On Wednesday, President Trump propelled US stock markets into one of their most significant one-day surges in recent history with just one social media post.
At 1:18 p.m. ET, Trump announced on his Truth Social platform a 90-day suspension of his aggressive “reciprocal” tariffs for countries that do not retaliate.
“I have authorized a 90-day PAUSE and a greatly reduced Reciprocal Tariff of 10%, effective immediately,” a portion of Trump’s message stated.
The market reacted explosively.
By the closing bell on Wall Street, the S&P 500 (^GSPC) had surged by 9.5%, while the Nasdaq Composite (^IXIC) surged 12.1%.
The Dow Jones Industrial Average (^DJI) climbed by 2,962 points, equivalent to a 7.9% increase.
This marked the S&P 500’s most impressive day since 2008, while the Nasdaq experienced its second-largest single-day gain on record, surpassed only by a 14% increase in 2001. The Dow’s rally was also its largest since 2008.
“For the last few days, things seemed pretty grim, but today apparently was one of the biggest days in financial history,” President Trump remarked from the White House lawn. “That’s quite a turnaround.”
Michael Kantrowitz, chief investment strategist at Piper Sandler, noted in an afternoon memo that the market finally received a “much-needed dose of relief.”
“Though uncertainty remains, the worst-case scenario is probably no longer in play,” Kantrowitz commented.
Investors eagerly purchased stocks, saving their inquiries for another time.
Major tech companies led the rise, with Nvidia (NVDA) shares skyrocketing over 18%, and Tesla (TSLA) climbing 22%.
Apple (AAPL), Meta (META), and Amazon (AMZN) saw increases of 15.3%, 14.8%, and 12%, respectively.
While investors welcomed Trump’s announcement, the president simultaneously intensified his trade conflict with China by raising tariffs on imports from China to 125%.
Nevertheless, stocks that had suffered in recent days due to concerns about Chinese tariffs, like Apple, saw gains on Wednesday. Shares of the Chinese e-commerce behemoth Alibaba (BABA) climbed more than 5%, while JD.Com (JD) rose over 6%.
The market rebound occurred amidst ongoing volatility that began late Tuesday and extended into overnight trading.
The S&P 500 had fluctuated by roughly 6% peak-to-trough for three consecutive sessions through Tuesday, a scenario reminiscent of the market tumult witnessed in 1987, 2008, and 2020. Over the same time frame, the 10-year Treasury yield (^TNX) experienced an upward spike of more than 50 basis points, marking its most drastic movement since 2001.
“The Stock and Bond Vigilantes indicate that the Trump administration may be dealing with explosive materials,” warned Ed Yardeni, president of Yardeni Research, in a research note issued on Tuesday evening. “It’s possible that something might disrupt the capital markets due to the stress of the administration’s trade war.”
