Wall Street’s main indexes reversed course and moved sharply higher after White House economic adviser Kevin Hassett said in an interview that President Donald Trump was considering a 90-day tariff pause on all countries expect China.
At 10:20 a.m. the Dow Jones Industrial Average rose 333.50 points, or 0.87%, to 38,614.49, the S&P 500 gained 79.99 points, or 1.69%, to 5,154.07 and the Nasdaq Composite gained 362.69 points, or 2.33%, to 15,950.47.
Earlier in morning trading, the 10-year U.S. Treasury yields fell to 3.953%, with investors pricing in a chance of a fifth interest-rate cut from the Federal Reserve this year.
S&P 500 futures plunged more than 20% from their peak, suggesting the benchmark index has been in a bear market since February if it closes down 20% from its all-time highs.
Trump told reporters late on Sunday that investors must endure the consequences and that he would refrain from negotiating with China until the U.S. trade deficit is addressed.
In the two sessions after Trump’s tariff decision, the index has tumbled 10.5%, erasing nearly $5 trillion in market value, marking its most significant two-day loss since March 2020.