Last Updated:
Tech stocks like Apple, Nvidia, and Tesla all surged more than 6%, signaling investors might be bargain shopping while stocks are relatively cheap
US President Donald Trump (IMAGE: REUTERS file)
US stocks skyrocketed on Wednesday after President Donald Trump announced a 90-day pause in some of his tariffs, except for China, at a time when markets were under intense selling pressure.
The S&P 500 surged by 7%, marking its largest one-day gain in five years. The Dow Jones Industrial Average increased by 2,331 points, or 6.1%, also its biggest gain since 2020. The Nasdaq composite rose by 8.8%. Last week, all major indices hit record lows after China announced retaliatory tariffs on US.
Investors have eagerly awaited Trump to ease his tariffs, which economists warn could lead to a global recession and higher inflation. However, Trump on Wednesday announced an increase in tariffs to 125% after China hiked duty on US goods to 84%.
Tech stocks such as Apple, Nvidia, and Tesla all jumped more than 6%, indicating that investors might be seizing the opportunity to buy stocks while they are relatively inexpensive.
Treasury Secretary Scott Bessent later clarified that all countries except China would go back to the 10% baseline tariff rate as negotiations take place. The pause would not apply to sector tariffs, Bessent said.
Bessent called President Trump’s 90-day pause on some tariffs a victory and a testament to the President’s negotiation skills, attributing the move to the overwhelming response from US allies. He rejected the notion that the decision was a reversal.
“No. President Trump created maximum negotiating leverage for himself,” he told reporters on Wednesday, CNN reported. “We have been overwhelmed by the response from our allies who want to negotiate in good faith.”
“We expect them to come with their best deal,” he added.
Before Trump’s announcement, investors were dealing with a back-and-forth between China and US on tariffs. The EU also approved its first set of tariffs on the U.S. starting April 15.
Concerns about the tariff rollout led to a four-day decline in stocks. Over the previous four trading sessions, the Dow dropped more than 4,500 points, the S&P 500 fell 12%, and the Nasdaq Composite decreased by over 13%.
- Location :
New York, United States of America (USA)