U.S. stocks surged dramatically on Wednesday, with the S&P 500 posting its largest one-day percentage gain since 2008 following President Donald Trump’s announcement of a 90-day tariff pause on imports from key trading partners. The move brought much-needed relief to markets after days of turmoil driven by fears of escalating trade tensions.
Key Market Reactions:
S&P 500 jumps 9.5%, its biggest rally since 2008
Nasdaq surges 12.2%, marking its second-largest gain on record
Dow Jones leaps 7.87%, adding nearly 3,000 points
Treasury yields ease after strong auction demand
Dollar strengthens against yen and euro
Why Markets Rallied
President Trump’s decision to temporarily halt tariffs on multiple countries—while raising levies on Chinese imports to 125%—sparked a massive relief rally. Investors had feared that aggressive trade policies could push the U.S. economy into a recession.
Gina Bolvin, President of Bolvin Wealth Management Group, noted:
“This is the pivotal moment we’ve been waiting for. The timing couldn’t be better, coinciding with the start of earnings season. However, uncertainty looms over what happens after the 90-day period, leaving investors to grapple with potential volatility ahead.”
Treasury Market Stabilizes
Earlier in the day, 10-year Treasury yields spiked to 4.515%, the highest since February, before retreating to 4.328% after a well-received auction. The sell-off in bonds had raised concerns about deteriorating market liquidity, but demand returned following the tariff pause announcement.
Dollar Gains Momentum
The U.S. dollar index (DXY) rose 0.25% to 103.03, with notable strength against the yen (+1.04%) and Swiss franc (+1.01%). The euro dipped slightly to $1.0947.
Global and Commodity Markets React
MSCI World Index surged 5.7%
European stocks (STOXX 600) closed down 3.5% before the U.S. rally
Oil prices jumped over 4%, with Brent crude settling at 65.48
What’s Next?
Investors will now focus on:
Upcoming earnings reports, starting with major banks like JPMorgan Chase (JPM.N) on Friday
Long-term trade policy developments after the 90-day pause
Federal Reserve’s response to shifting economic conditions
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Conclusion
The S&P 500’s historic rally underscores how sensitive markets remain to trade policy shifts. While the short-term relief is clear, lingering questions about post-90-day trade strategies could keep volatility elevated.
