Dow surges 2,800 points for biggest gain in 5 years, Nasdaq jumps 11% after Trump tariff reversal: Live updates

Stocks surged Wednesday after President Donald Trump announced a pause in some of the ‘reciprocal’ tariffs, causing a market that’s been under extreme pressure for the last week to explode higher.

The S&P 500 skyrocketed 9.1%, on pace for its biggest one-day gain in five years. The Dow Jones Industrial Average advanced 2,861 points, or 7.4%, also its biggest advance since 2020. The Nasdaq Composite jumped 11.7%, its largest one-day jump in decades.

“I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump posted on his Truth Social. Trump, in the same post, said he was raising the tariff on China higher again to 125%.

Treasury Secretary Scott Bessent later clarified that all countries except China would go back to the 10% baseline tariff rate as negotiations take place. The pause would not apply to sector tariffs, Bessent said.

Stocks that were heavily pressured by the trade war tensions led the comeback Wednesday afternoon. Apple and Nvidia soared more than 11% and 13%, respectively. Walmart shares rallied 9.7%. Tesla shares climbed more than 19% on the back of the pause announcement.

“Given how depressed stock prices and sentiment had become, the 90-day pause is sparking a violent rebound, and delaying implementation certainly removes a giant overhang from the market,” said Adam Crisafulli, Vital Knowledge founder. “But – tariffs are not going away. China’s tariff rate is now in triple digit territory, and who knows what happens in 90 days when this pause concludes.”

Prior to the announcement of the 90-day pause, investors were on edge over an escalating tit-for-tat between China and Trump. The EU had also approved its first set of tariffs on the U.S. set to start April 15.

Nonetheless, stocks were trending higher into the afternoon. Traders were encouraged after Bessent stated he would be taking a lead negotiating role in tariff talks. President Trump also urged investors that now was “a great time to buy” shortly after the market open in a post on Truth Social.

Trump’s pause declaration went out at 1:18 p.m. ET when the Dow was about 350 points higher for the day. Seconds later, the 30-stock index surged more than 2,000 points.

In a press conference later in the afternoon, Trump said investors’ fears had gone overboard.

“I thought that people were jumping a little bit out of line. They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid,” Trump said.

“This allows for at least a near-term rally, but I would not assume that the bottom has been put in place,” added Sam Stovall, chief investment strategist at CFRA Research. “Fool me once shame on you; fool me five times, shame on me.”

Anxiety around the rollout of the tariffs fueled a four-day rout for stocks. Over the course of the previous four trading sessions, the Dow lost more than 4,500 points, while the S&P 500 sustained a 12% loss. The Nasdaq Composite was down more than 13% in that period. These were losses not seen since the pandemic.