Stock Market Skyrockets as Trump Suspends Tariffs; Dow Jones Surges Over 2,000 Points
U.S. markets rallied sharply on Wednesday after former President Donald Trump announced a 90-day suspension of reciprocal tariffs affecting several nations. This decision, following retaliatory measures from China and the European Union, sparked investor optimism and boosted market sentiment.
Dow Jones Jumps 2,200 Points Amid Tariff Truce
The Dow Jones Industrial Average skyrocketed by over 2,200 points, gaining approximately 5.8% in afternoon trading. At its peak, the index surged more than 2,400 points, marking one of its most significant rallies in recent months.
The S&P 500 climbed 6.9%, recovering from four consecutive losses, while the Nasdaq Composite soared 8.7%, outperforming major indices despite remaining below key moving averages. The Russell 2000 also surged more than 7%, reversing earlier declines.
Federal Reserve Minutes Awaited by Investors
Market participants closely watched for the release of the Federal Reserve’s meeting minutes at 2 p.m. ET, hoping for insights into the future of interest rate cuts and the Fed’s stance on economic conditions amid ongoing trade tensions.
Tech Stocks Lead the Rally: Nvidia, Tesla, and Apple Bounce Back
Nvidia shares jumped 11%, though they remained below important resistance levels. Tesla rose 6%, rebounding from a four-day dip, while Apple surged over 10%, reclaiming strength after losing its top spot to Microsoft in market capitalization.
Amazon climbed 7%, and UnitedHealth gained 10%, breaking past a key buy point. Trump Media & Technology Group also advanced by 14%, reflecting strong investor confidence.
Retail & Airline Stocks Rally: Walmart Up 9%
Retail heavyweight Walmart rallied more than 9%, retesting its 200-day moving average despite concerns over tariff impacts on imported goods. Analysts from Citi Research highlighted Walmart’s resilience due to strong domestic sourcing.
Delta Air Lines shares climbed nearly 6% after reporting better-than-expected quarterly results, with $14 billion in sales and EPS of 46 cents. However, the airline refrained from giving a full-year forecast, citing market uncertainty.
Gold Stocks Surge as Safe-Haven Demand Rises
As trade tensions escalated, gold stocks witnessed a major rally. AngloGold Ashanti, Alamos Gold, and Gold Fields each rose 6–7%, while Harmony Gold Mining jumped around 10%, with many of these names reclaiming their 21-day moving averages.
China, EU Respond With New Tariffs
Following Trump’s tariff announcement, China raised its tariffs to 84% on U.S. goods and threatened additional measures. However, Beijing also indicated willingness to engage in “equal-footed” negotiations. Meanwhile, the European Union approved its first wave of retaliatory tariffs, set to launch next week.
Pharma Stocks Under Pressure
The Trump administration signaled upcoming tariffs on pharmaceutical products, causing shares of Pfizer, Johnson & Johnson, and Merck to slide in early trade before stabilizing later in the session.
Treasury Yields and ETF Movements
The 10-year Treasury yield surged 13 basis points to 4.39%, reflecting increased optimism. The Innovator IBD 50 ETF rose 4.3%, mirroring broad-based buying interest.
Outlook Ahead: Inflation Data and Bank Earnings in Focus
Looking ahead, the U.S. Labor Department is expected to release March inflation data on Thursday. Forecasts indicate a 0.1% monthly rise and a 2.6% annual increase, with core inflation estimated to grow 0.3% monthly and 3% annually.
Additionally, major financial institutions including JPMorgan Chase, Wells Fargo, Morgan Stanley, and BlackRock are set to report earnings on Friday, potentially shaping the next market move.
