US stocks rocketed higher on Wednesday as President Trump announced a 90-day pause on tariffs for most countries, yet at the same time upped increasingly ballooning levies on China.
The benchmark S&P 500 ( ^GSPC ) roared up over 9.5%, posting its best day since 2008. The tech-heavy Nasdaq Composite ( ^IXIC ) rallied a whopping 12% for its second-best day on record and its biggest gain since 2001. The Dow Jones Industrial Average ( ^DJI ) was up over 7.8%, or roughly 3,000 points.
"I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately," Trump posted on Truth Social just before the market lifted off. Trump also said in the post that the US would be raising its tariffs on China to 125%.
Asked about the pause later Wednesday, Trump nodded to what he called "yippy" stock and bond markets as a factor in his decision.
"I thought people were jumping a bit out of line," he said. He also seemed to revel in the market's wild upward swing, calling it the "biggest day in financial history."
Big Tech led the rally on Wednesday. Nvidia ( NVDA ) soared over 18%, while Tesla ( TSLA ) added almost 23%. Apple ( AAPL ), and Meta ( META ) rallied about 15%. Amazon ( AMZN ) added 12%.
Read more: Live updates on Trump tariffs fallout
Meanwhile, the benchmark 10-year Treasury yield ( ^TNX ) continued a recent surge, moving up near 4.4% after paring some gains.
China had retaliated on Wednesday in an escalating trade war between the world's two biggest trading partners, which has roiled markets amid worries about the broader economic fallout. Beijing said the hike to 84% duties will take effect on Thursday.
Trump's abrupt backtrack Wednesday completed a remarkable week of tariff whiplash. Trump's announcement of the so-called "reciprocal" tariffs stunned markets last week, and massive hikes on Vietnam, Japan, India, and others went into full effect early Wednesday. The Nasdaq has already entered into a bear market, while the S&P 500 and Dow were creeping closer until Wednesday's sharp move higher.
Trump had weighed in on the volatile market action just after the open on Wednesday, writing on social media that it is a "great time to buy!!!"
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