Dow Surges 2,600 as US Markets Soar in Relief After Trump Pauses Some of His Tariffs
New York: U.S. markets surged Wednesday following President Donald Trump’s unexpected decision to temporarily halt the majority of his global tariffs. The announcement sparked a wave of optimism on Wall Street, leading to a dramatic rally that investors had been hoping for amid ongoing economic uncertainty.
The S&P 500 jumped 8% in afternoon trading, putting it on track for one of its strongest performances in decades. Earlier in the day, the index had been down as concerns mounted over whether the escalating trade war might push the global economy into recession.
The market turnaround came after Trump posted on social media: “I have authorized a 90 day PAUSE,” referring to a temporary halt on new tariffs targeting over 75 countries that had not retaliated against recent U.S. tariff hikes.
Later, Treasury Secretary Scott Bessent clarified that the administration was suspending most of the reciprocal tariffs against major trading partners, though a 10% tariff on nearly all global imports would remain in effect.
The Dow Jones Industrial Average soared 2,665 points, a 7.1% increase, while the tech-heavy Nasdaq surged by 10.3%.
However, tensions with China remain high. Trump declared plans to increase tariffs on Chinese imports to 125%. In response, China’s Ministry of Commerce warned of “necessary countermeasures” and vowed to “fight to the end” if the U.S. escalates trade restrictions further.
Market volatility has become the norm as investors navigate the unpredictable course of the trade war. On Tuesday, the S&P 500 swung dramatically between gains and losses — a 4% rise followed by a 3% drop — for a second consecutive day of wild fluctuations.
Wall Street also found some relief from a relatively calm U.S. Treasury auction. A sharp rise in Treasury yields earlier in the week had rattled investors, suggesting increasing financial stress. Analysts attributed the spike to investors offloading U.S. Treasurys, possibly to cover stock market losses or as a response to trade tensions.
Despite typically being considered a safe haven, Treasury yields rose instead of falling during the recent market turmoil. The 10-year Treasury yield, which had neared 4.50% early Wednesday, retreated slightly to 4.39% after the auction and Trump’s tariff pause. It was still up from 4.26% on Tuesday and 4.01% last week.
Global markets mirrored the turbulence. European and most Asian indexes suffered significant losses. London’s FTSE 100 fell 2.9%, Tokyo’s Nikkei 225 dropped 3.9%, and Paris’ CAC 40 declined 3.3%. In contrast, Chinese markets edged higher, with Hong Kong rising 0.7% and Shanghai climbing 1.3%.
(With PTI Inputs)