US stocks rallied on Wednesday, with the Dow Jones Industrial Average gaining nearly 500 points and the S&P 500 surging over 1%. Investors were hopeful that President Donald Trump would make concessions on his controversial tariffs after granting a one-month delay for automakers whose cars comply with the United States-Mexico-Canada Agreement. Tesla, GM, and Ford saw significant gains following the announcement.
White House Press Secretary Karoline Leavitt also indicated that Trump was open to providing additional exemptions on the taxes. “This is further confirmation for investors who feel that way,” said Ross Mayfield, investment strategy analyst at Baird. Despite the rally, uncertainty lingered as the three indexes swung between positive and negative territory before the announcement of delays for automakers.
Stocks rally on tariff delay
Trump’s tariffs and retaliatory plans from China, Mexico, and Canada have rocked markets this week, with stocks down in the prior two sessions. The energy and utility sectors failed to find support on Wednesday, with the energy sector down 1.4% as oil prices fell on OPEC+ plans to gradually increase production starting in April.
Utilities were trading 0.51% lower. JPMorgan reiterated its overweight rating on Best Buy, suggesting that the recent pullback could provide a buying opportunity for investors. William Blair also reiterated its overweight rating on defense contractor AeroVironment, highlighting robust demand for the company’s products, particularly drones.
Loop Capital upgraded Royal Caribbean to buy from hold following the cruise line’s better-than-expected outlook during its analyst day. SimCorp’s Brown attributed Wednesday’s market gains to the White House’s announcement of a delay in auto tariffs, which helped reverse a “selling frenzy” seen earlier in the week.
