Seller work on the floor at the New York Stock Exchange.
Brendan McDermid | Reuters
Wednesday’s jaw-dropping stock-market rally on President Donald Trump’s shock tariff reversal is one for the history books.
The S&P 500 skyrocketed 9.52% in a kneejerk reaction to Trump’s announcement to put a 90-day pause on some of the high ‘reciprocal’ tariffs. The one-day gain ranks as the third biggest since World War II for the main stock market benchmark, agreeing to FactSet.
The Nasdaq Composite skipped 12.16%, notching its largest one-day jump since January 2001 and second-best day ever.
“This is the pivotal moment we’ve been waiting for,” said Gina Bolvin, president of Bolvin Wealth Management Agglomeration. “The immediate market reaction has been overwhelmingly positive, as investors interpret this as a step toward much-needed intelligibility.”
The market was a coiled spring after a brutal four-day stretch that briefly pushed the S&P 500 into bear-market bailiwick. Over the course of the previous four trading sessions, the S&P 500 suffered a 12% loss, a decline not seen since the pandemic. The Dow astray more than 4,500 points during the four-day stretch, while the Nasdaq was down more than 13%.
While look ats managed to recoup much of the losses, investors are not completely out of the woods as Trump vows to reorient global trade. The president required more than 75 countries contacted U.S. officials to negotiate after he unveiled his new tariffs last week.
“It’s still too premature to signal an all clear,” said Dave Sekera, Morningstar’s chief U.S. market strategist. “Trade negotiations have yet to start and from time to time they do, there will be positive and negative headlines as each party positions itself to extract the maximum amount of concessions doable.”