Wednesday was a dramatic day on Wall Street, with the major US indices staging one of their biggest single-day rallies in history—fuelled by a surprise announcement from President Donald Trump to temporarily pause his sweeping tariff plan.
S&P 500 posts biggest gain since 2008
The S&P 500 surged 9.52% to close at 5,456.90, notching its largest one-day gain since the 2008 financial crisis and the third-biggest since World War II. The Dow Jones Industrial Average jumped nearly 2,963 points, or 7.87%, to 40,608.45, its best percentage gain since March 2020. And the Nasdaq Composite soared 12.16%, closing at 17,124.97, in what was its second-strongest day ever.
It was also the busiest trading day on record, with around 30 billion shares changing hands.
Trump pauses tariffs — but not for China
The rally was triggered by a post on Trump’s Truth Social account, in which he announced a 90-day pause on most of his reciprocal tariffs, reducing the rate to 10% for many trading partners. However, tariffs on Chinese imports were hiked again, this time to a punishing 125%.
US Treasury Secretary Scott Bessent confirmed the new baseline rate would apply to over 75 countries, excluding China, Mexico and Canada. Tariffs on Mexico and Canada remain unchanged at 25%.
Tech and consumer stocks lead rebound
Investors flooded back into heavily sold-off sectors. Apple and Nvidia jumped over 15% and 19%, respectively, while Tesla shares surged more than 22%. Walmart gained nearly 10%.
Trump defended his policy shift at an afternoon press conference, saying investors had “gotten a little bit yippy.” His remarks coincided with a dramatic surge in the Dow—up more than 2,000 points within seconds of his social media post.
Commodities and the dollar
WTI crude is trading 4.65% higher at US$62.35 a barrel.
Spot gold is trading 0.01% higher at US$3,082.90 an ounce.
One Australian dollar is buying 61.52 US cents.
Futures
The SPI futures are pointing to a massive 490 point or 6.62% rise.
