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The U.S. stock market staged one of its largest rallies in history after President Donald Trump announced a temporary pause on some of his “reciprocal” tariffs, sparking a dramatic rebound in a market that had been under significant pressure for the past week.
The S&P 500 surged 9.52%, closing at 5,456.90, marking its largest single-day gain since 2008 and the third-biggest increase in the post World War 2 era. The Dow Jones Industrial Average jumped 2,962.86 points, or 7.87%, to finish at 40,608.45, its sharpest percentage gain since March 2020. Meanwhile, the Nasdaq Composite soared 12.16% to settle at 17,124.97, posting its largest one-day rise since January 2001 and the second-best performance in its history.
Trading volume was unprecedented, with approximately 30 billion shares changing hands—a record-setting day on Wall Street, according to 18 years of market records.
“I have authorized a 90-day PAUSE, along with a significantly reduced Reciprocal Tariff during this period to 10%, effective immediately,” Trump announced on his Truth Social account. However, he also stated tariffs on China would later rise to 125% following the pause.
Treasury Secretary Scott Bessent clarified that the reduced 10% tariff rate would apply to all nations except China, as negotiations continue. Sector-specific tariffs, however, would remain unaffected by the pause, Bessent noted.
Stocks previously battered by trade war tensions led the rebound. Apple and Nvidia shares soared 15% and nearly 19%, respectively, while Walmart climbed 9.6%. Tesla experienced a dramatic surge, skyrocketing over 22% following the announcement.
This unexpected pause in tariffs provided much-needed relief to a market rattled by uncertainty, fueling a historic day for investors.
