WhyItDropped

Nasdaq · May 12, 2025

The day the US and China cut tariffs

+4.35%

single-day change vs previous close

Part of a longer stretch

The Nasdaq's tariff-pause rally

midway through · 2025-04-08 → 2025-06-27, +32.78% over the whole period

What happened that day?

  • The Nasdaq rose 4.35% on the day
  • Over the weekend the US and China met in Switzerland and agreed to cut each other's tariffs sharply for ninety days
  • The April pause had left China out; this agreement filled that in. The largest remaining hole was closed
  • What mattered was less the rate than whether the other side would negotiate at all. Once talks start, the worst case is erased
  • Technology rose most. Having been most exposed to tariffs, it recovered most
  • The advance carried on and the Nasdaq regained its February high on 27 June

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.