Adapted by:
Rubén Andrés
WriterWriter at Xataka. I've been working remotely for more than a decade and I'm a strong advocate of technology as a way to improve our lives. Full-time addict of black, sugar-free coffee.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
Stock markets have been declining recently worldwide amid uncertainty following President Donald Trump’s new tariff policies. However, Thursday was a historic day after markets rose sharply again. The turning point was the announcement of a 90-day suspension on U.S. tariffs.
Huge stocks rally. The unexpected pause on tariffs has alleviated pressure on major tech companies. Notably, it’s also triggered an unprecedented rally in share prices. Investors who took a chance in the market at its lowest point saw their portfolios surge. The S&P 500 rose by 9.5%, marking the fourth-largest increase in the index’s history.
According to the Financial Times, this rally added around $4.3 trillion to the S&P 500 market cap, while the Dow Jones increased by nearly 8%. Additionally, Business Insider reports that the sudden rise in share prices led the world’s 10 richest people to gain a combined $135 billion.
Tech companies bounce back. In the aftermath of the recent stock market collapse, tech companies showed remarkable resilience. The Nasdaq 100 surged by 12%, leading companies such as Microsoft, Apple, Tesla, Amazon, and Meta to recover more than $1.5 trillion in market value within just a few hours. This recovery also positively impacted the net worth of their founders and major shareholders.
Business Insider estimates that Tesla CEO Elon Musk was the biggest winner, regaining $35.9 billion in net worth in a single day. Amazon founder Jeff Bezos and Meta CEO Mark Zuckerberg followed suit, adding $18.5 billion and $25.8 billion to their fortunes, respectively. Despite this significant rebound, tech billionaires still have a considerable way to go to recover from the over $244.36 billion in losses they incurred in recent weeks.
Seizing the opportunity. Trump’s announcement not only benefited billionaires but also savvy investors who took advantage of the previous market downturn.
“A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful,” Berkshire Hathaway CEO Warren Buffett once said. Investors who adhered to this principle and purchased shares during the market’s decline were able to realize substantial profits with the subsequent recovery.
Concerns about market manipulation. However, the rapid rebound in the stock market has raised suspicions among analysts regarding potential market manipulation. According to The New York Times, some suspect Trump’s actions were a deliberate attempt to benefit specific economic groups. Just three hours before announcing the tariff pause, Trump encouraged people to buy stocks while the market was still plummeting.
Democratic Party representatives, including Senator Elizabeth Warren (D-MA), have already called for an investigation to determine whether there was any market manipulation aimed at benefiting donors. Meanwhile, Trump jokingly discussed with his aides and presidential cabinet members how much each of them had profited from the stock market rally.
Image | Aditya Vyas
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