Tariff pause creates wild market swings, Dow closes nearly 8% higher than opening

CAPE GIRARDEAU, Mo. (KBSI) — With President Donald Trump’s 90-day pause on trade tariffs, U.S. markets experienced quite a ride Thursday, with both the Dow Jones Industrial Average and the S&P 500 closing significantly higher following a dip in the morning.

The Dow moved between 37,000 and 45,000 points, ultimately ending the day with a 7.87% gain. The S&P 500 also saw changes between 5,000 and 6,000 points as investor activity picked up, including around a notable 10% uptick in buy-ins.

“This is a difficult time,” said Robin Cole, president of The Rite Group. “This morning, the market started out in terror, and then changes in the postponement of tariffs in most cases, caused the market to jump and bound up 10%.”

Cole, like thousands of investors across the country, watched the market closely as it dipped early in the day before rebounding in a major way.

“When it’s going up, the temptation of your emotions is to buy,” Cole said. “The right time to buy is when it’s down and you feel terror, and that’s the time to buy.”

The paused tariffs is focused on the goods and services the United States imports and exports on a daily basis. The U.S. currently imports $1.47 trillion more than it exports, a trade off President Trump, looks to address.

“As that is brought into balance, which is the objective here, there will be lots of chaos,” Cole said.

Looking ahead, Cole sees potential opportunities throughout the market fluctuating days. “We may benefit from seeing the economy slowing down and a 10 year and 15 year Treasury rates coming down,” he said. “Buying a house with a lower mortgage rate, following those Treasury bond rates down, may be a door that will open in the coming months.”

For investors who have already pulled funds from the market, Cole recommends a cautious approach on buying back in.“Ease it back in a little at a time,” he said.

Mentioning the long time investment strategy of Warren Buffett. Who always reminded people of the long term growth potential in the United States of America. “There are lots of good things. Be optimistic about in America.” Cole says.

Cole also gives a local comparison, referencing tax increases in Cape Girardeau. “The amount of grant money coming out of Washington may dry up further,” he said. “Repairing and recovering from the possession of grant money availability is going to become very serious to solve.”

As for whether or not now is a good time to invest, Cole talks about the unpredictability of the market. “This morning, maybe I would have said yes. This afternoon, maybe I would say no,” he said. “Go back to dollar-cost average buying. Take the emotion out of the process.”

Despite the uncertainty in the market, Cole hits home the importance of staying calm throughout the process. “We cannot predict what the market will do,” he said. “But we can be calm and orderly in our decision-making.”

The Dow closed the day with a 7.87% increase from the opening bell.