Delta Air Lines Gets Big News After Tariffs Pause
Delta Air Lines is one of the busiest U.S.-based airlines in the market and was even named the Top U.S. Airline of 2024 by The Wall Street Journal for a fourth consecutive year back in January.
But, as with many airlines, Delta's stock plunged over the past few days due to U.S. tariffs being implemented on various countries around the world. Other airlines that felt the heat were United Airlines and American Airlines, to name a few.
Delta caught a major break, though, on April 9, when the new United States tariffs implemented just after midnight were paused for more than 75 U.S. trading partners who didn't retaliate against the tariffs when they took effect.
Following the news of the 90-day trade pause, Delta stocks surged, and they ended the day up a massive 26%.
"Airline stocks were among the top gainers in the S&P 500, with Delta (DAL) and United Airlines (UAL) up 26% and 23%, respectively," Investopedia noted in an April 9 feature on the stock market turnaround. "Other travel-related stocks also soared, as shares of Expedia (EXPE) and Norwegian Cruise Line (NCLH) each advanced 18%."
The U.S.'s 90-day pause on tariffs does not apply to China, because they had imposed retaliatory tariffs. Following the U.S. tariffs being implemented on China, they boosted taxes on American imports to 84% and said they would "fight to the end" in the trade war. U.S. tariffs on China will now rise to a total of 125%.
Investopedia added, "The yield on the 10-year Treasury was at 4.33% in late-afternoon trading, down from an earlier high of 4.52%, its highest level since mid-February, but up from 4.26% at yesterday's close. Analysts have said that recent unusual moves in Treasurys could have stemmed from traders seeking out liquidity, Chinese investors dumping Treasurys or hedge fund maneuvering."
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