U.S. stocks roared back on Wednesday after days of steep losses after President Trump said he was pausing most tariffs for 90 days, except for those on Chinese goods.
The Dow Jones Industrial Average soared nearly 3,000 points, or close to 8% as relief spread across investors. The S&P surged more than 9%, while the Nasdaq rallied more than 12%.
The powerful rally comes after days of big losses in global markets — from Tokyo to London — sparked by Trump's announcement last week that he would impose reciprocal tariffs on countries, as well as a universal 10% tariff.
But Trump backed down from many of his actions, announcing a 90-day pause on those reciprocal tariffs except for China. The president said he would raise tariffs on China to 125% after the Asian economy had earlier in the day announced a 84% retaliatory tariff on the U.S.
The president added he would continue to impose a 10% tariff on all other countries.
Despite the pause on many of Trump's tariffs, other actions Trump has announced, including his tariffs on steel and aluminum imports, still remain.
And investors will likely closely follow what happens between China and the U.S., with neither side showing any willingness to back down from their escalating stances for now.
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