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Wall Street Roars as Trump Tariff Pause Sparks Historic Market Rally
In a stunning turn on Wednesday, Wall Street roared to life as markets posted historic gains following President Donald Trump’s surprise 90-day pause on most of his recently imposed tariffs. The Dow Jones Industrial Average (DJI) soared by 2,962.86 points—climbing 7.9% to close at 40,608.45, marking the largest single-day point gain in the index’s history.
The S&P 500 (SPX) posted a 9.5% jump, its biggest daily rally since the 2008 global financial crisis. Meanwhile, the tech-heavy NASDAQ Composite (IXIC) surged 12.2%, driven by a powerful rebound in big tech names.
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Trump Fires the Starting Gun
In a Truth Social post shortly before the market’s open, Trump foreshadowed (hinted at) the impending rally, writing:
“THIS IS A GREAT TIME TO BUY!!!”
However, the catalyst for the major reversal, which sent stocks soaring, came following President Trump’s midday social media proclamation:
“I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
The move came after escalating global tensions and rising diplomatic pressure from dozens of U.S. trading partners. According to the President, over 75 countries have reached out to the Trump administration to negotiate a solution since the aggressive tariff wave began in March. The White House, while standing firm on its position with China, appeared to blink elsewhere—at least temporarily.
China, notably, was excluded from the pause. In the same announcement, Trump revealed he would hike tariffs on Chinese imports to a steep 125%, citing what he described as “disrespect” and Beijing’s retaliatory tariffs of 84% on U.S. goods.
Global Rally Follows U.S. Surge
Markets around the world echoed the surge on Wall Street. Japan’s Nikkei 225 Index (NI225) leapt 9%. Australia’s S&P/ASX 200 (AXJO) gained 4%. European indexes also jumped sharply, with Germany’s DAX Performance Index (DAX) and the UK’s FTSE 100 Index (FTSE) both rising more than 4%.
Investors reacted not only to the easing of trade tensions but also to the broader message: the White House was willing to adjust its tone in the face of economic risk. The tariff rollback also fueled a sense that further concessions—or at least negotiation windows—might be coming.
Major U.S. companies with international exposure rallied sharply. Apple (NASDAQ: AAPL) jumped more than 15%. Nvidia (NASDAQ: NVDA) and Tesla (NASDAQ: TSLA) gained over 18% and 22%, respectively. Multinationals like Caterpillar (NYSE: CAT) +9% and Boeing (NYSE: BA) +15% saw their best single-day performances in years.
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Pause Brings Relief, But Uncertainty Lingers
Despite the celebration, questions remain. The tariff pause is temporary—90 days—and does not affect industry-specific measures already in place, such as those targeting automobiles, steel, and aluminum. Additionally, markets remain wary of the White House’s stance toward China, which has hardened in recent weeks.
Trade analysts noted that the administration left itself room to maneuver—or pivot again. In multiple press briefings, White House officials described the pause as a window for negotiation, not a permanent policy shift. The situation remains fluid, and market volatility will likely return as the pause period advances.
Political Reactions Divide Washington
The reaction to Trump’s tariff maneuvering split along party lines on Capitol Hill. Republican lawmakers largely backed the move as a tactical decision to improve leverage in upcoming trade talks. Democrats were far more critical, accusing the president of sowing chaos with abrupt economic policy changes.
Senator Elizabeth Warren took to the Senate floor and issued a sharp challenge to her colleagues:
“This is a moment of truth for Republicans.”
Warren argued the tariff decisions were destabilizing markets and eroding U.S. credibility abroad, calling for more oversight of the administration’s trade policy authority.
Looking Ahead
While Wednesday’s rally offered a welcome reprieve for investors battered by weeks of uncertainty, few believe the storm has passed. The global economy remains in a delicate state, and trade tensions—especially with China—continue to cast a long shadow.
Still, the 90-day pause marked a rare moment of relief, and Wall Street wasted no time celebrating it. For now, the bulls are back in charge—but the clock is ticking.
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Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
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