U.S. stocks surge after Trump announces temporary tariff relief

U.S. stocks soared Wednesday after President Donald Trump said he would temporarily ease some tariffs, delivering the relief investors had been seeking. The S&P 500 jumped 7.8% in afternoon trading, reversing an earlier decline driven by fears that Trump’s trade policies could trigger a recession, according to reports.

The rally began immediately after Trump announced the move in a social media post.

The Dow Jones Industrial Average surged 2,476 points, or 6.6%, to 39,683 as of 1:35 p.m. Eastern time, while the Nasdaq composite climbed 9%. Trump said he authorized a 90-day pause on certain tariffs and reduced reciprocal duties to 10%, effective immediately.

“Because so many countries have not retaliated, I have taken this step to allow for productive negotiations,” he wrote.

The rally followed the implementation of Trump’s latest tariffs at midnight, which included a 104% levy on Chinese imports. China responded by announcing plans to raise tariffs on U.S. goods to 84% on Thursday. Markets also got a boost from a smooth U.S. Treasury auction, easing concerns after earlier yield spikes had unsettled investors.

Other key market moves included the Nasdaq rising 7.8%, crude oil gaining 1.5%, gold climbing 3%, and the euro edging up 0.4%.

Overseas, most global markets fell. London’s FTSE 100 dropped 2.9%, Tokyo’s Nikkei 225 sank 3.9%, and Paris’ CAC 40 fell 3.3%. Chinese stocks were an exception, with Hong Kong’s Hang Seng up 0.7% and Shanghai’s index gaining 1.3%.