Stocks staged a powerful comeback on Wednesday after President Donald Trump announced a 90-day pause on tariffs, giving relief to markets that had been battered for days by trade tensions.
The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all surged, signaling renewed investor optimism despite ongoing uncertainty.
The S&P 500 jumped 6%, while the Dow Jones Industrial Average soared by 2,159 points, or 5.7%.
The tech-heavy Nasdaq Composite led gains, climbing an impressive 8%.
The rally came after Trump posted on his Truth Social platform:
“I have authorized a 90-day PAUSE and a substantially lowered Reciprocal Tariff during this period of 10%, also effective immediately.”
However, Trump’s statement left some ambiguity, as it was unclear whether the tariff pause would apply globally or only to select nations. In the same post, he also announced a steep hike in tariffs on Chinese goods, raising them to 125%.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump wrote
Apple, Nvidia, and Walmart stocks soar
Stocks that had suffered the most during the escalating trade war were among the biggest gainers.
Apple shares surged 7%, Nvidia rallied 10%, and Walmart climbed 9%, reflecting renewed investor appetite for battered names.
Earlier in the day, markets were rattled after China announced an 84% retaliatory tariff on US goods starting Thursday.
This followed the US imposing fresh tariffs of 104% on Chinese imports.
Meanwhile, the European Union greenlit its first set of tariffs against the US, set to kick in on April 15.
Canada also reaffirmed plans to impose a 25% retaliatory tariff on US-manufactured vehicles, particularly those not fully compliant with the United States-Mexico-Canada Agreement (USMCA).
Despite early volatility, sentiment shifted after Treasury Secretary Scott Bessent revealed he would spearhead negotiations on trade matters.
Wall Street welcomed the move, viewing Bessent as a more market-friendly figure compared to Commerce Secretary Howard Lutnick or trade advisor Peter Navarro.
In another attempt to calm investors, Trump took to Truth Social shortly after the opening bell, urging calm and suggesting, “this is a great time to buy.”
The announcement provided a much-needed breather after stocks endured a four-day slump fueled by fears over the global tariff showdown.
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