U.S. financial markets opened Monday with a robust rally, decisively burying the much-hyped "Black Monday 2.0" fears that had gripped investors after last week’s tariff-driven chaos. Following President Donald Trump’s announcement of sweeping tariffs on nearly 180 countries, Wall Street had braced for a catastrophic sell-off akin to the 1987 crash. Instead, as of this moment, markets are soaring, proving the doomsday scenarios were just that—fantasies.
Last week was a wild ride. On April 4, the Dow Jones Industrial Average cratered 2,231.07 points (-5.5%) to 38,314.86, its worst day since June 2020. The S&P 500 plunged 5.97% to 5,074.08, and the Nasdaq Composite dropped 5.82% to 15,587.79, entering bear market territory with a 22% decline from its December peak. The $5 trillion wipeout in U.S. market value came as Trump’s tariff threats sparked global trade war fears, with pundits like Jim Cramer warning of a 1987-style collapse. Yet, today’s action has turned the narrative on its head.
As of 11:24 AM PDT, the Dow Jones Industrial Average is roaring at 39,510.81, up 1,195.95 points or 3.12% from Friday’s close. The S&P 500 is at 5,287.09, surging 213.01 points or 4.20%, while the Nasdaq Composite is leading the pack at 16,413.19, up 825.40 points or 5.29%. These real-time figures from MarketWatch reflect a powerful rebound, with pre-market gains holding strong into late morning trading. Globally, Japan’s Nikkei 225, down 7.5% at its open, has cut losses to 2.9%, and the Euro Stoxx 50 is up 1.4%, signaling a broader relief wave.
What’s fueling this surge? Investors appear to have exhaled over the weekend, reassessing the tariff fallout. Trump’s Sunday reaffirmation of his "America First" policy—promising "trillions in investment"—hasn’t deterred markets, which are now betting on negotiation or delay. Bill Ackman’s weekend hint at a possible tariff reprieve has added fuel to the optimism, though no official word has emerged. Meanwhile, the Federal Reserve’s shadow looms large. With Polymarket recession odds at 62%, traders are eyeing rate cuts—CME data shows a 47.2% chance of a half-point cut in June, up from 20% last week—lifting hopes of a soft landing.
Volatility is easing but still notable, with the VIX at 34.7, down from Friday’s 40-plus peak. Tech stocks are roaring back—Nasdaq leaders like Tesla (+6.8% pre-market), Nvidia (+5.2%), and Alphabet (+3.9%) are driving gains—while Apple (+0.8%) plays catch-up. Defensive sectors like utilities (+1.2%) and consumer staples (+1.5%) are also up, per CNBC sector data, showing broad-based buying. Energy stocks, however, lag slightly (-0.3%), reflecting oil’s dip to $61.80 per barrel.
The "Black Monday" hysteria clearly missed the mark. Today’s movers—Dow up 3.12%, S&P 500 up 4.20%, Nasdaq up 5.29%—signal resilience, not ruin. As an X user quipped, “They screamed ‘Black Monday,’ but we got a green tsunami.” Wednesday’s additional tariff deadlines loom, but for now, the Fed’s potential pivot and market momentum suggest the worst is behind us. History shows recoveries follow even the steepest drops—1987 included—and today’s rally proves the ship’s still afloat, sailing strong.
If you find value in this censorship-proof, ad-free public service, consider helping:
Bitcoin address: bc1qq7tnet6ys0dkvl336v8d0prqnmvk9zzj2dxpqe
Join Dee Stevens and Orlando on The Ship Show!
