Donald Trump announces 90-day tariff suspension, historical earnings for U.S. stocks

President Donald Trump said he would temporarily back most of the tariffs as investors desperately hope he would temporarily back, with U.S. stocks soaring to one of the best times in history.

The S&P 500 surged 9.5% on Wednesday, a good year for the market. Earlier in the day, it sank over concerns that Trump’s trade war could put the global economy into recession. But then posted on social media what investors around the world have been waiting and hopeful.

Trump, who recognized that more than 75 countries said he had been negotiating trade and had no latest tariff hikes on him, said: “I have authorized a 90-day pause.”

Treasury Secretary Scott Bessent later told reporters that Trump had suspended what he called reciprocity tariffs among most of the country’s largest trading partners, but maintained tariffs on nearly all of his global imports.

China is a huge exception, though, with Trump saying tariffs charge as much as 125% on its products. This increases the likelihood of more volatility that could shock financial markets. The trade war is not over yet, and the battle between the world’s two largest economies is escalating. A week ago, U.S. stocks were also still below their so-called “liberation day” global tariffs.

But at least Wednesday, the focus on Wall Street is positive. The Dow Jones Industrial Average hit 2,962 points, or 7.9%. Nasdaq Composite jumped 12.2%. The S&P 500 has been the third best day since 1940.

This is due to doubts about whether Trump cares about the financial pain the U.S. stock market suffers from tariffs. The S&P 500 is an index located in the center of many 401(k) accounts and entered the record of nearly 19% less than two months ago.

This surprised many professional investors who have long believed that the president of the record that once announced the Dow Jones Index under his watch would withdraw their policy if they sent out the market to rise.

Wednesday’s rally pulled the S&P 500 from the brink of a so-called “bear market.” This is what professionals say, when U.S. stocks fall 10% by 10% each year or so, graduates will graduate from a vicious decline of 20%. The index is now down 11.2% from its record.

Wall Street also received a boost on Wednesday’s relatively stable U.S. Treasury auction in the bond market. The early jump in treasury production shocked the market, indicating that the pressure levels continued to rise. Trump himself said on Wednesday that he had been watching the bond market “a little uncomfortable”.

Analysts say there are several reasons that could be the rise in yields, including hedge funds and other investors who have to sell their bonds to raise cash to make up for losses in the stock market. Investors outside the U.S. may also sell their U.S. Treasury Department due to the trade war. Such an action would lower the Treasury price, which in turn would increase its yield.

Regardless of the reason behind it, the Treasury yields are higher, adding pressure to the stock market and growing mortgages and other loans to U.S. households and businesses.

These moves are particularly noteworthy because in the market, yields in the U.S. Treasury have historically declined (not increased) as these bonds are often seen as some of the safest investments. The sharp rise this week brought the 10-year Treasury yield back to its late February position.

After nearly 4.50% in the morning, the 10-year yield dropped to 4.34% after Trump paused and the Treasury auction. That is still up from 4.26% late Tuesday, compared to just 4.01% last weekend.

Of course, the trade war is not over yet. Bessent and Trump clearly show their anger at China, which has been raising their tariffs on U.S. goods and announcing every move Trump has taken.

China earlier said it would raise tariffs on U.S. goods to 84% on Thursday. “If the United States insists on further escalating its economic and trade restrictions, China will have the will to own businesses and have abundant means to take the necessary countermeasures and fight for the final battle,” the Commerce Department said.

Later, the U.S. Treasury Secretary said in a message to countries around the world, but perhaps the most direct targeting China, “Don’t retaliate, you will get rewards.”

Wednesday’s rally provided the latest reminder that some of the best times in the U.S. stock market have gathered on the worst days in history. This is one of the reasons many financial advisers recommend not trying to time the market and sell stocks and other investments, due to the risk of missing out on such a huge day.

For example, the biggest gains from the S&P 500 since World War II were 11.6% gains on October 13, 2008. That was in the depths of the Great Depression, and when fearing that the financial system would collapse, the S&P 500 was at nearly 57% of its lowest point between late 2007 and March 2009.

Wednesday’s earnings were widely distributed in the U.S. stock market, with 98% of the S&P 500 stocks rallied.

Leading are airlines and other stocks that require customers to feel confident going to work or vacation.

The Delta airline soared 23.4%. Earlier in the day, it had canceled its financial forecast for 2025 as the trade war expected business and household spending and curb bookings across the travel sector. All in all, the S&P 500 rose 474.13 points to 5,456.90. Dow Jones Industrials’ industry received 2,962.86 to 40,608.45, while Nasdaq combined soared 1,857.06 to 17,124.97.

In foreign stock markets, the index fell in most parts of Europe and most of Asia after the shutdown was made before Trump announced the news.

London’s FTSE 100 fell 2.9%, Tokyo’s Nikkei 225 fell 3.9%, and CAC 40 fell 3.3% in Paris. Chinese stocks are an outlier, with the Hong Kong index up 0.7% and Shanghai up 1.3%.

(This story has not been edited by DNA staff and published from PTI)