President Trump's Tariff Pause: Why Airline Stocks Delta, JetBlue, and United Took Flight Today

What a roller coaster of a ride it has been since last Wednesday. After an incredibly rough stretch over the last four days of trading, this afternoon, President Donald Trump announced a 90-day pause on higher tariff rates for most countries, implementing a base 10% reciprocal level. However, Trump left tariffs in place on China and boosted them to 124%.The announcement led to a face-melting rally, with the Dow Jones Industrial Average blasting nearly 3,000 points higher. The S&P 500 rose nearly 10%, while the tech-heavy Nasdaq Composite jumped 12%. Airline stocks joined the party in a big way. Shares of Delta Airlines (NYSE: DAL) rose over 23%, while shares of JetBlue (NASDAQ: JBLU) and United Airlines (NASDAQ: UAL) blasted roughly 19% and 26% higher, respectively.President Trump said he would increase the tariff rate on China due to "the lack of respect that China has shown to the World's Markets." He also said he decided to implement the pause due to the 75 countries that had reached out to negotiate and because people were "a little bit yippy" and "afraid." Immediately following the announcement, Goldman Sachs rescinded its call for the U.S. economy to tip into a recession this year.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool