US stocks soared to one of their best days in history on a euphoric Wall Street Wednesday after President Trump said he would back off on most of his tariffs temporarily, as investors had desperately hoped he would.
- The S&P 500 rocketed higher by 474.13 points, or 9.5%, to 5,456.90. It was the index's third-best day since World War II.
- The Dow Jones Industrial leaped 2,962.86, or 7.9% to 40,608.45.
- The Nasdaq composite jumped 1,857.06 points, or 12.2%, to 17,124.97.
"I have authorized a 90 day PAUSE," Trump said, after recognizing the more than 75 countries that he said have been negotiating on trade and had not retaliated against his latest increases in tariffs. Treasury Secretary Scott Bessent later told reporters that Trump was pausing his so-called 'reciprocal' tariffs on most of the country's biggest trading partners, but maintaining his 10% tariff on nearly all global imports.
China was a huge exception, though, with Trump saying tariffs are going up to 125% against its products. That raises the possibility of more swings ahead that could stun financial markets. The trade war is not over, and an escalating battle between the world's two largest economies can create plenty of damage, the AP reports. US stocks are also still below where they were just a week ago, when Trump announced worldwide tariffs in what he called "Liberation Day."
Wednesday's rally pulled the S&P 500 index away from the edge of what's called a "bear market." That's what professionals call it when a run-of-the-mill drop of 10% for US stocks, which happens every year or so, graduates into a more vicious fall of 20%. The index is now down less than 13% from its record. Wall Street also got a boost from a relatively smooth auction of US Treasurys in the bond market Wednesday. Earlier jumps in Treasury yields had rattled the market sharply, indicating increasing levels of stress.
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On Wall Street, the gains were widespread across the U.S. stock market, and 98% of the stocks in the S&P 500 index rallied. Leading the way were airlines and other stocks that need customers feeling confident enough to travel for work or for vacation. Delta Air Lines soared 23.4%. Earlier in the day, it had pulled financial forecasts for 2025 as the trade war scrambles expectations for business and household spending and depresses bookings across the travel sector. Tesla jumped 22.7% and Nvidia rose 18.7%. (More stock market stories.)
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