US stocks have skyrocketed in a huge economic turnaround after Donald Trump announced that he would pause tariffs on 75 countries for 90 days.
Marking one of the most dramatic market rebounds in years, the Dow Jones Industrial Average surged 2,963 points - or 7.87 per cent - while the S&P 500 shot up 9.52 per cent and the tech-heavy Nasdaq soared 12.16 per cent.
Earlier today, the US President gave the green light to a 90-day pause on the "reciprocal" tariffs "effective immediately" - although this exemption did not apply to those imposed on China.
Wall Street had been on edge, searching for any sign that Trump might shift his approach to his punitive tariffs which were announced on America's so-called "Liberation Day" at the start of the month.
When Trump made his announcement, investors were ready to dive in
GETTY/Google
When Trump made his announcement, investors were ready to dive in.
The S&P 500 posted its best day since October 2008. The Nasdaq recorded its best day since January 2001 and its second-best day in its history, while the Dow posted its best day in five years.
Nearly every single company in the S&P 500 rose, according to data from FactSet.
"The market's move upward is violent, and speaks to how badly the market was looking for clarity on this issue," said chief investment officer at Texas investment firm SWBC Chris Brigati.
"Trump illustrated to everyone in the market today how incredibly difficult it is to trade around his tariff regime, because he and only he knows when it ends," said Jamie Cox, the managing partner at Harris Financial Group.
LATEST ON TRUMP'S TARIFFS:
The S&P 500 is now up 12.86 per cent from its low point reached two days ago, but is still down more than 3.7 per cent from its close on April 2, right before Trump initially put his reciprocal tariffs into effect.
The Nasdaq remains 2.7 per cent below its April 2 close.
The S&P 500 had been on the precipice of bear market territory, nearly dropping 20 per cent from its February all-time high.
Despite the market rally, uncertainty remains as Trump still escalated the trade war with China, raising its tariff rates to 125 per cent from 104 per cent.
Additionally, universal duties of 10 per cent remain on all US imports alongside the targeted, sectoral tariffs on autos.
After he made his shock announcement, Donald Trump spoke to the press outside the White House
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Just after the opening bell, Trump posted on his social media platform Truth Social: "BE COOL!" and "This is a great time to buy!!!"
At first, US stocks had a mixed start to the day after China announced retaliation and the European Union announced countermeasures against Trump's enormous "reciprocal" tariffs.
Japan's Nikkei index closed 4 per cent down, while Hong Kong's Hang Seng finished marginally higher.
South Korea's Kospi index headed into bear market territory, falling about 20 per cent from its July 2024 peak while in Europe the STOXX 600 index dropped 3.5 per cent.
US oil reversed course after tumbling earlier, gaining 4.65 per cent to $62.35 a barrel as gold spot prices rose 3.8 per cent.
The CBOE volatility index, known as the "VIX" or Wall Street's "fear gauge," sank 30 per cent after Trump's announcement.
US Treasury yields have risen in recent days as investors sold off bonds, with the benchmark 10-year yield has now settled around 4.3 per cent.
