The US stock market surged on Wednesday after President Donald Trump announced a 90-day pause on some tariffs. The Dow skyrocketed 2,963 points, or 7.87%. The S&P 500 shot up 9.52%, posting its best day since October 2008.
The tech-heavy Nasdaq soared 12.16%, experiencing its best day since January 2001. Trump’s announcement ignited optimism among investors who had been on edge due to the punitive tariffs. Nearly every company in the S&P 500 rose, with Amazon gaining 11.98% and Nike rising 11.36%.
United Airlines soared 26.14%, Delta Air Lines surged 23.38%, and American Airlines jumped 22.6%. On the Nasdaq, Apple surged 15.33%, Nvidia rose 18.72%, Palantir gained 19%, and Tesla surged 22.69%. “The market’s move upward is violent and speaks to how badly the market was looking for clarity on this issue,” said Chris Brigati, chief investment officer at SWBC.
Despite the rally, the S&P 500 remains down more than 3.7% from its close on April 2, right before Trump initially announced his “reciprocal” tariffs.
Trump ignites investor optimism
The Nasdaq is still 2.7% lower than its April 2 close.
Before the upswing, the S&P 500 had been close to entering bear market territory. Uncertainty remains as Trump escalated the trade war with China, raising its tariff rates to 125% from 104%. Universal duties of 10% also remain on all US imports alongside targeted sectoral tariffs on autos.
“Trump illustrated to everyone in the market today how incredibly difficult it is to trade around his tariff regime because he and only he knows when it ends,” said Jamie Cox, managing partner at Harris Financial Group. Global markets saw mixed results, with Japan’s Nikkei index closing 4% down and Hong Kong’s Hang Seng finishing marginally higher. US oil reversed course and gained 4.65% to $62.35 a barrel after tumbling earlier in the day.
Gold spot prices rose more than 3%, while US Treasury yields have risen as investors sold off bonds. Trump told reporters he was watching volatility in the bond market, which was among the factors that led to his decision to institute the 90-day pause on some tariffs. As markets continue to react to fluctuating trade policies and global economic conditions, uncertainty remains a significant factor for investors.
