10/04/2025
US stocks soared on Wednesday following President Donald Trump’s announcement of a 90-day pause on some reciprocal tariffs, a move that sent markets into a historic rally.
The news of the tariff shift came just as Wall Street was anxiously awaiting any sign of change in the president’s trade policy, which had previously sent markets into turmoil.
Trump’s announcement, which authorised a temporary halt to most of the tariffs, with the exception of those against China, spurred an immediate surge in US markets.
The Dow Jones Industrial Average skyrocketed by 2,963 points, or 7.87%. The S&P 500 jumped by 9.52%, while the tech-heavy Nasdaq soared by 12.16%.
The rally marked one of the most significant single-day rebounds in recent memory. The S&P 500 posted its best day since October 2008, and the Nasdaq had its best day since January 2001. The Dow experienced its best performance in five years.
Widespread market gains
The rally was widespread, with nearly every company in the S&P 500 seeing gains. Amazon saw a notable increase of 11.98%, while Nike rose by 11.36%. Airline stocks led the charge, with United Airlines soaring 26.14%, followed by Delta Air Lines up 23.38% and American Airlines, which surged 22.6%.
On the Nasdaq, tech giants also enjoyed significant gains, with Apple climbing 15.33%, Nvidia rising 18.72%, Palantir gaining 19%, and Tesla seeing an impressive 22.69% surge.
The S&P 500, which had recently been on the brink of entering bear market territory, is now up 12.86% from its recent low, although it remains 3.7% down from its peak on April 2, just before the announcement of the tariff changes. The Nasdaq remains 2.7% down from that date.
A volatile path to clarity
Trump’s move marked a shift in the volatile trajectory of US trade policy. For weeks, investors had been on edge as the president escalated the trade war with China, imposing heavy tariffs on Chinese goods. However, his new announcement provided much-needed clarity for Wall Street, and investors jumped at the chance to buy up stocks at discounted prices.