Wall Street Explodes: S&P 500 Jumps 9.5%, Nasdaq Up 12.1% as Trump Hits Pause on Tariffs

Trump's 90-Day Tariff Pause Triggers Historic Wall Street Rally

Wall Street staged one of its biggest rallies in history on Wednesday after President Donald Trump announced a 90-day suspension of steep reciprocal tariffs on non-retaliating countries.

In a Truth Social post at 1:18 p.m. ET, Trump revealed the tariff pause, saying rates would be lowered to 10% during the period, effective immediately.

“I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff of 10%,” Trump wrote.

The market response was explosive.

• S&P 500 surged 9.5%, its best day since 2008.

• Nasdaq Composite jumped 12.1%, its second-largest one-day gain ever.

• Dow Jones rose 2,962 points or 7.9%, marking its strongest rally since the financial crisis.

Trump said from the White House:

“Things looked bleak, but this could be the biggest day in financial history.”

Big Tech Leads the Surge

• Nvidia (NVDA): +18%

• Tesla (TSLA): +22%

• Apple (AAPL), Meta (META), Amazon (AMZN): All rose over 12%

Even stocks hit by China tariff fears bounced back, including Alibaba (+5%) and JD.com 

Trade War with China Escalates

Despite the pause for others, Trump raised tariffs on Chinese imports to 125%, escalating trade tensions.

Still, investors focused on the good news. Piper Sandler’s Michael Kantrowitz noted:

“The worst-case scenario is now likely off the table.”

Volatility Still Lingers

The S&P had already swung over 6% peak-to-trough for three straight sessions — a rare phenomenon. Bond yields soared too, but slightly cooled after Trump’s post.

Meanwhile, Goldman Sachs, which earlier in the day predicted a recession, reversed that view post-announcement — though they still warn of a 45% chance of recession.

For now, Wall Street found the relief it needed.