Trump's Tariffs — And The Art Of The Rebound - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ)

Core Insights - President Trump's announcement of a 10% baseline global tariff and reciprocal duties triggered significant market volatility, marking April 2, 2025, as "Liberation Day" [1][2] - The S&P 500 is up approximately 17% in 2025, rebounding over 30% from its April lows, indicating a strong recovery in the market [7] Market Reaction - The market experienced extreme volatility, with the worst two-day sell-off since the COVID-19 pandemic followed by one of the greatest single-day rallies [2] - In the first two days post-announcement, approximately $6.6 trillion in market capitalization was lost, the largest two-day loss on record [5] Daily Market Performance - On April 3, the Dow Jones fell by 3.98%, S&P 500 by 4.88%, and Nasdaq by 5.97% due to fears of a global trade war [3] - The market rout deepened on April 4, with the Dow down 5.20%, S&P 500 down 6.00%, and Nasdaq down 5.80% as China retaliated with a 34% tariff [3] - A significant rebound occurred on April 9, with the S&P 500 rising by 9.5% after Trump announced a 90-day pause on reciprocal rates for most allies [3][4] Recovery and Performance - By the end of 2025, the Dow Jones gained 13% and is up 28% from its April lows, while the Nasdaq 100 is up more than 21% on the year and over 50% from its April lows [7][8] - The S&P 500's surge on April 9 was its third-best single day since 1940, reflecting how much the market had priced in a worst-case scenario before the announcement of the 90-day pause [6]