US stocks experienced a significant rebound on March 15, 2024, as President Donald Trump retreated from his previously announced tariff threats. The S&P 500 and Dow Jones Industrial Average posted notable gains, supported by positive economic data and strong corporate earnings that contributed to the market’s upward momentum.
The S&P 500 climbed by 0.5%, partially recovering losses incurred earlier in the week. This increase followed Trump’s announcement regarding a potential deal concerning Greenland and the suspension of a 10% tariff on European goods. The Dow Jones surged by 306 points, or 0.6%, while the Nasdaq Composite rose by 0.9%. Such fluctuations illustrate a recurring trend where initial threats from Trump lead to market volatility, followed by a recovery once the shock subsides.
Despite the day’s recovery, some caution lingered among investors, as reflected by fluctuations in gold prices and the weakening of the U.S. dollar against other currencies. The market had recently experienced its worst drop since October, prompting concern among investors. Nevertheless, encouraging economic indicators, including a decrease in unemployment claims and better-than-expected growth figures, helped ease some of these fears.
The market’s performance was heavily influenced by broader economic conditions. While Trump’s tariffs initially spurred a downturn, his subsequent retraction provided relief. Treasury yields remained stable, suggesting that foreign investors were not withdrawing from the U.S. bond market. Strong economic reports indicated a robust U.S. economy, characterized by low unemployment rates and accelerated economic growth during the summer months, contributing to an optimistic outlook.
Investor sentiment was bolstered further by positive corporate earnings. Northern Trust saw its shares rise by 6% after reporting a stronger-than-expected profit for the end of 2025. CEO Michael O’Grady noted that the financial services firm is entering 2026 with “strong momentum across all our businesses.” Similarly, Procter & Gamble shares increased by 2.6% after exceeding profit expectations, although the company’s revenue slightly fell short amid a “challenging consumer and geopolitical environment,” as described by CEO Shailesh Jejurikar. Additionally, shares of BitGo, which specializes in managing digital assets, rose by 2.7% upon its debut on the New York Stock Exchange, pricing its stock at $18 per share.
International markets mirrored the positive sentiment in the U.S. Following the easing of tariff threats, indexes in Europe and Asia also saw gains. Japan’s Nikkei 225 surged by 1.7%, and Germany’s DAX climbed by 1.2%. This global response underscores the interconnectedness of the financial markets and the substantial influence of U.S. policy decisions on international trading environments.
The day’s trading activity exemplifies the complex interplay of political events, economic indicators, and investor sentiment within the financial markets. As markets continue to respond dynamically to geopolitical events, the influence of Trump’s policy changes remains a critical factor in shaping investor behavior and market trends.
