Markets Explode on Tariff Relief
US stock markets witnessed a powerful rally on Wednesday after President Trump unexpectedly announced a 90-day pause on tariffs for most countries. The announcement reversed growing fears of a prolonged trade war and reignited investor confidence. The S&P 500 soared 9.5 percent, its biggest jump since 2008, while the Dow surged 7.9 percent, adding a record 2,963 points in one day.
Trump’s Truth Social Post Sparks Rally
The rally was triggered by a post from Trump on Truth Social around 1 p.m. ET, stating that over 75 countries were willing to negotiate and had not retaliated. As a result, Trump authorized a 90-day pause on tariffs and introduced a reduced 10 percent reciprocal tariff, effective immediately. This move sharply reversed the bearish sentiment that had gripped global markets.
$1.8 Trillion Boom in Tech Stocks
The tech sector led the charge. The Nasdaq rocketed 12 percent, marking its second-biggest gain ever. The so-called “Magnificent Seven” tech companies collectively gained more than $1.8 trillion in market value. Nvidia rose 19 percent, adding $440 billion in a single day. Tesla surged 23 percent, and both Apple and Meta gained 15 percent each.
Broader Market Momentum
The rally extended beyond equities. Gold prices rose to $3,100 per troy ounce, their best day since 2023, while US crude futures rebounded over 4 percent to $62.35 a barrel. Even the WSJ Dollar Index briefly bounced back after the tariff pause announcement.
Recession Fears Ease
Investor optimism returned fast. Dow and S&P futures continued to climb in overnight trading. Goldman Sachs withdrew its earlier recession prediction, and Treasury yields slightly retreated after strong demand in a 10-year note auction. The market response hinted at renewed faith in economic stability, at least in the short term.
Bottom Line:
President Trump’s 90-day tariff pause acted as a market catalyst, fueling one of the largest single-day gains in tech stock history. As trade tensions cool, Wall Street sees a new wave of optimism, signaling hope for economic recovery and global cooperation.
