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Stocks surged Wednesday after President Donald Trump announced a pause in some of the ‘reciprocal’ tariffs, causing a market that’s been under extreme pressure for the last week to explode higher.
The Dow Jones Industrials popped 2,962.86 points, or 7.9%, to close Wednesday’s trading at 40,608.45, its biggest advance since 2020.
The broader index improved 474,13 points, or 9.5%, to 5,456.40 for its biggest one-day gain in five years
The NASDAQ barreled 1,857.06 points, or 12.2% to 17,124.97, also its biggest one-day hike in decades.
Stocks that were heavily pressured by the trade war tensions led the comeback Wednesday afternoon. Apple leaped more than 11% and Nvidia more than 13%. Walmart shares rallied 9.7%. Tesla shares climbed more than 19% on the back of the pause announcement.
Over the course of the previous four trading sessions, the Dow lost more than 4,500 points, while the S&P 500 sustained a 12% loss. The NASDAQ is down more than 13% in that period.
China announced it will impose an 84% levy on U.S. goods starting Thursday. This comes after U.S. tariffs of 104% on Chinese imports took effect shortly after midnight. The EU also approved its first set of tariffs on the U.S. set to start on April 15.
U.S. tariffs on imports from other countries also took effect. Canada reconfirmed Tuesday plans to put into effect 25% retaliatory tariffs on U.S.-made vehicles.
This includes vehicles that aren’t compliant with the United States-Mexico-Canada Agreement, in addition to non-Canadian and non-Mexican content of USMCA-compliant fully assembled vehicles brought into Canada from the U.S.
Some traders may have been encouraged that Treasury Secretary Scott Bessent said he would be taking a lead negotiating role in tariff talks. Wall Street would favor a bigger role for Bessent over Commerce Secretary Howard Lutnick or trade advisor Peter Navarro.
Prices for the 10-year Treasury lost ground, pushing yields to 4.34% from Tuesday’s 4.28%. Treasury prices and yields move in opposite directions.
Oil prices slid $2.99 to $62.57 U.S. a barrel.
Prices for gold spiked $121.40 to $3,111.60 U.S.
