After weeks of relentless selling, the market has finally bounced — and bounced hard. Leading the charge is the Betashares Nasdaq 100 ETF (ASX: NDQ), which is up sharply today following a historic rally on Wall Street overnight.
At the time of writing, the popular NDQ ETF is up 11% to $46.50.
So, what's driving the sudden surge?
According to a report from CNBC, US President Donald Trump has announced a 90-day pause on some of his previously announced reciprocal tariffs, easing tensions that had been putting immense pressure on tech stocks and risk assets in recent weeks.
The result? One of the biggest rallies in market history.
The Nasdaq Composite index — the benchmark that the NDQ ETF tracks — jumped a staggering 12.16% overnight, marking its second-best day ever and its biggest one-day gain since January 2001.
That strength has spilled over into the local session, with the ASX ETF surging as investors scramble to get back into beaten-down tech names.
Remember, prior to this bounce, the fund had fallen around 20% from its high, dragged lower by fears of a full-scale trade war between the U.S., China, Europe, and other nations.
Stocks like Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Tesla (NASDAQ: TSLA) — some of the ASX ETF's biggest holdings — rallied as much as 15%, 19%, and 22% respectively, providing a major tailwind for the NDQ ETF.
Overnight, Donald Trump posted on Truth Social that he had authorised a "90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately."
This was followed by a clarification from Treasury Secretary Scott Bessent, who noted that all countries except China would revert to the baseline tariff during negotiations.
Traders were quick to seize on the news. About 30 billion shares changed hands according to CNBC — the highest volume day on record — as the rally accelerated into the close.
Adam Crisafulli from Vital Knowledge commented:
Given how depressed stock prices and sentiment had become, the 90-day pause is sparking a violent rebound… but tariffs are not going away.
For Aussie investors holding or eyeing off the NDQ ETF, this is a clear reminder of just how quickly sentiment can turn — especially in the tech sector.
While the pause doesn't resolve the trade dispute permanently, it removes a major overhang for now. And with some of the world's best businesses trading at more reasonable valuations, investors have taken the opportunity to pile back into growth names.
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