A stock market surge for the record books! Wall Street roared back to life Wednesday after President Donald Trump announced a temporary pause on some of his sweeping new tariffs.
The stock market surge was instant and powerful. The Nasdaq surged more than 12 percent and the S&P 500 by 10 percent, their biggest jumps since October 2008 when there was a relief rally during the Great Recession. The Dow was up a huge 3,000 points, or 7.9 percent.
Nvidia shares jumped 15 percent, the most since July, while Apple shares rose 13 percent, the largest move in over 5 years since March 2020. Microsoft’s shares gained $220 billion.
Trump Freezes Tariffs—But Hits China Hard
Trump said he’s freezing the rollout of new tariffs for 90 days for most countries. He added that nations that haven’t retaliated against the U.S. would return to a 10% base tariff during negotiations.
However, he wasn’t cutting China any slack. Trump raised tariffs on Chinese imports to a staggering 125%, accusing Beijing of showing “no respect” to global markets.
“I have authorized a 90-day PAUSE,” Trump posted on Truth Social. “Also a substantially lowered Reciprocal Tariff of 10%, effective immediately—except for China.”
Wall Street Goes Wild
Investors were already jittery after a brutal four-day selloff. Markets had dropped more than 4,500 points on the Dow and over 13% on the Nasdaq. So, when the news broke just before 1:30 p.m., traders pounced.
Nvidia jumped 13%. Apple surged 11%—its biggest gain since 2020. Walmart rocketed nearly 11%, while Tesla rallied 19%. Even airline stocks soared, with Delta up 22% and United 19%.
“This stock market surge shows how desperate investors were for any sign of relief,” said analyst Adam Crisafulli. “It’s a big bounce, but the trade war isn’t over.”
Bessent Clarifies the Tariff Plan
Treasury Secretary Scott Bessent offered more clarity at a White House press briefing.
“The 10% universal tariff is now a temporary floor,” he said. “Negotiations are underway, but the sector-specific tariffs will remain in place for now.”
Bessent also warned that the pause excludes China, which faces the full 125% tariff immediately.
Ackman Cheers, Markets Cheer Louder
Even billionaire investor Bill Ackman—who recently criticized Trump’s tariff strategy—applauded the move. “Thank you on behalf of all Americans,” he wrote on X. Moments later, he added: “Bessent rocks!”
Investors echoed his sentiment. CNBC’s Magnificent Seven Index, which includes tech giants like Amazon, Apple, and Tesla, surged more than 11%.
The Fed May Rethink Rate Cuts
The stock market surge also shifted Wall Street’s expectations for interest rates. Before the pause, traders had priced in up to five Fed rate cuts this year. After the tariff news, that number dropped to three.
Economists now expect the Fed to wait until June to begin cutting, instead of starting as early as May.
Companies Cash In
Retailers and tech companies led the gains. Walmart is on track for its best day since March 2020. Apple and Nvidia posted double-digit gains as investors bet the tariff freeze will ease global supply chain costs.
Travel companies also benefited. Expedia soared more than 15%, while JetBlue and Alaska Airlines climbed over 12%.
One Stock Misses the Party
While most stocks soared, Bristol-Myers Squibb stood alone in the red. The pharmaceutical giant slipped 0.4%, the only S&P 500 company not to join the rally.
Still, analysts say this was likely a sector-specific miss, not a sign of broader weakness.
Not Everyone’s Celebrating Yet
Despite the massive rally, some analysts remained cautious. “This isn’t the end of trade tension,” warned CFRA strategist Sam Stovall. “We’ve been fooled before. Don’t assume the bottom is in.”
Stovall referenced earlier tariff announcements that led to short-term rallies, only to be followed by more pain.
What Comes Next?
Markets will now watch the next 90 days closely. If the U.S. and its trade partners can strike new agreements, the gains may stick. But if talks break down—or if China retaliates even harder—stocks could tumble again.
Trump didn’t offer clues about what would happen after the pause. But his message was clear: he’s not done reshaping global trade.
In the Meantime, Bulls Run Free
For now, though, Wall Street is breathing easier. The pause has created a window of optimism in what’s been a tense economic year.
Investors are watching closely. But with Wednesday’s stock market surge, it’s clear that even a temporary truce can send the bulls charging.
