Wall Street staged one of its largest rallies in history on Wednesday after President Donald Trump announced a pause on some of his tariffs on global trading partners, releasing much of the nervous tension seen in recent sessions to propel the broader market higher.
The Dow Jones Industrial Average surged nearly 3,000 points higher in its biggest one-day advance since March 2020, while the S&P 500 Index climbed about 10% in its largest one-session gain since 2008 and marketing its third-biggest gain in post-WWII history. The tech-heavy Nasdaq Composite also jumped 12% in its second-best trading day ever -- notching its largest one-day gain since January 2001.
Here's how the market settled on Wednesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Stocks soared higher on Wednesday after Trump dropped new tariff rates on imports from most countries to 10% for 90 days to better facilitate negotiations. About 30 billion shares were traded, marking the biggest volume day in Wall Street history, according to records started nearly two decades ago.
"I have authorized a 90 PAUSE, and a substantially lowered Reciprocal Tariff during this period, or 10%, also effective immediately," Trump wrote in a post on his social media platform Truth Social on Wednesday.
"Based on the lack of respect that China has shown the World's Markets, I am hereby raising the Tariff charged to China ... to 125%, effective immediately," Trump wrote in the same post. "At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A, and other Countries, is no longer sustainable or acceptable."
Trump's new announcement comes as a global trade war brews in direct response to his extreme tariff policies.
China announced it will raise its duties on U.S. imports to 84% from 34% starting April 10 in response to the Trump administration's tariff hike of more than 100% on Chinese goods that went into effect at midnight. According to the Office of the United States Trade Representative, the U.S. imported $438.9 billion in goods from China in 2024, while exporting $143.5 billion worth of goods.
The European Union on Wednesday voted to approve its first set of retaliatory tariffs on U.S. imports, starting April 15, along with a second set to take effect on May 15. The 27-nation bloc issued the levies in response to the White House's 25% tariffs on steel and aluminum.
"The E.U. considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The E.U. has stated its clear preference to find negotiated outcomes with the U.S., which would be balanced and mutually beneficials," the European Commission said in a statement.
Canada's 25% tariff on U.S.-produced autos also took effect Wednesday, with Canadian officials targeting vehicles made with parts that are not compliant with the USMCA. That means even if the vehicle is manufactured by General Motors
Over the past few trading sessions, the Dow lost more than 4,500 points, while the S&P 500 briefly dropped into a bear market. The Nasdaq Composite had also lost more than 13% during that period; losses sustained by all three major averages have not been seen since the start of the coronavirus pandemic in 2020.
On the Earnings Front:
Delta Air Lines
"With broad economic uncertainty around global trade, growth has largely stalled," CEO Ed Bastian said during the company's earnings call with analysts. "In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control. This includes reducing planned capacity growth in the second half of the year to flat over last year while actively managing costs and capital expenditures."
