On Wednesday, the US stock market saw a major rally after President Donald Trump revealed a 90-day delay on tariffs for countries that had not yet imposed reciprocal tariffs.
This news, along with his decision to raise tariffs on Chinese imports to 125%, led to a dramatic surge in the stock market, with the Nasdaq experiencing its biggest rise since the Great Recession of 2008.
The S&P 500 also saw its largest intraday movement since April 2020, rising by 7.6%, while the Dow Jones Industrial Average jumped by 2,500 points, or 6.7%. Notably, Nvidia shares surged by 15%, marking their biggest gain since July, and Apple saw a 13% jump, the largest increase in over five years.
Clothing Retailers and Consumers Benefit from Pause on Tariffs
The surge in stocks wasn’t limited to tech giants—clothing retailers, like Nike, also saw a boost.
These companies are particularly sensitive to tariffs imposed on garment-producing countries such as Cambodia, Sri Lanka, and Bangladesh.
For consumers, this means they won’t have to face the immediate price hikes on clothes and shoes that had been feared due to tariffs.
In a matter of minutes, the value of US stocks skyrocketed, adding trillions of dollars to the market.
This surge is especially beneficial for Americans with investments in retirement accounts like 401(k)s and major stock indices like the Dow.
Trump’s Decision to Pause Tariffs and the Global Response
In a Truth Social post, Trump explained that he had decided to pause tariffs because more than 75 countries had reached out to US officials to negotiate a solution to the trade issues sparked by the new tariffs.
Trump’s decision was welcomed by many, but it also drew sharp reactions from other global players.
The European Union had previously launched its own countermeasures, targeting over 20 billion euros worth of US products, including soybeans, motorcycles, and beauty products.
However, the EU notably did not retaliate against the 20% US tariffs on steel and aluminum that came into effect earlier on Wednesday.
A Long Road Ahead for Global Trade Talks
While Trump’s move is seen as a step toward easing tensions, the ongoing trade conflict with China remains unresolved.
Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent both emphasized that China’s actions have not been in line with global expectations, and they hope the country will soon recognize that its approach to international trade is no longer sustainable.
The next few months will be critical for the global economy, as Trump’s tariff policies and the response from other nations will continue to shape the future of trade relations.
For now, the US stock market is reaping the benefits of the president’s pause on tariffs, but the world waits to see if these tensions will be resolved without further escalation.
Breaking News and Market Reactions
As this story unfolds, Wall Street and global markets will continue to react to these developments. US bond yields have also been rising, signaling concerns over the broader economic implications.
For now, President Trump remains confident that “everything is going to work out well,” urging Americans to stay calm despite the fluctuations in global trade.
