US stocks experienced a remarkable surge on Wednesday after President Donald Trump announced a 90-day pause on some tariffs. This unexpected move sent markets into a historic rally, offering investors hope amid ongoing trade tensions. The announcement included a temporary halt to most tariffs, excluding those imposed on China. Consequently, major US indices climbed sharply, indicating strong investor support.
The Dow Jones Industrial Average jumped by 2,963 points, a 7.87% increase. The S&P 500 gained 9.52%, while the tech-heavy Nasdaq skyrocketed by 12.16%. This rally marked one of the most significant rebounds in recent history. The S&P 500 enjoyed its best day since October 2008, while the Nasdaq recorded its best performance since January 2001.
Notably, nearly all companies in the S&P 500 posted gains. Amazon’s stock rose by 11.98%, while Nike increased by 11.36%. Airline stocks led the way, with United Airlines surging 26.14%. Tech giants also saw substantial increases, including Apple, Nvidia, and Tesla, which jumped by 15.33%, 18.72%, and 22.69%, respectively. However, despite this burst of positivity, the uncertainty around US-China trade relations remains a concern.
International markets initially reacted negatively to tariff escalations. Japan’s Nikkei index fell by 4%, and South Korea’s Kospi index entered bear market territory. Nevertheless, oil prices rebounded after Trump’s announcement, with US oil gaining 4.65%. The UK’s FTSE 100 index also rose over 6% in response, reflecting improved investor confidence. Despite the gains, UK ministers remain cautious about future negotiations and reducing trade barriers moving forward.