Stocks surged to one of their biggest gains since World War II after President Donald Trump paused his tariffs against most other nations, as investors had desperately hoped he would.
The S&P 500 soared 9.5% Wednesday. The index is still below where it was when Trump announced his sweeping set of tariffs last week. The Dow Jones Industrial Average flew nearly 3,000 points higher, and the Nasdaq composite jumped 12.2%.
Trump, though, did raise tariffs further on China. Treasury yields gave back some of their big market-rattling gains following Trump’s pause on most tariffs.
“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, with tariffs going up to 125% against its products.
The Dow Jones Industrial Average shot up to a gain of 2,640 points, or 7%, after erasing an earlier loss of nearly 370 points. The Nasdaq composite was 10.3% higher after earlier climbing as much as 11%, a gain that would count as a good year for the broad stock market.
The relief came for Wall Street after doubts had crept in about whether Trump cared about the financial pain the U.S. stock market was taking because of his tariffs. The S&P 500, the index that sits at the center of many 401(k) accounts, came into the day nearly 19% below its record set less than two months ago.