Stocks surged Wednesday after President Donald Trump announced a temporary pause on most tariffs, a move that had investors eagerly awaiting. The S&P 500 rose by 8.3%, heading toward one of its best days in decades, reversing earlier losses spurred by concerns about a potential recession due to the trade war. Trump’s announcement on social media platform Truth Social stated he had authorized a 90-day pause, recognizing over 75 countries negotiating on trade without retaliating against his tariff hikes.
Treasury Secretary Scott Bessent clarified that the pause would apply to most trading partners, while a 10% tariff would remain on global imports. However, China faced an exception, with tariffs increasing to 125% on Chinese products. The Dow Jones soared by 2,640 points, or 7%, and the Nasdaq surged 10.3%, marking a dramatic turnaround and lifting investor optimism across the markets.
