The Dow rose by nearly 3,000 points. The S&P 500 and Nasdaq indexes were up 9.5% and 12.2%, respectively, at market close.
TRUMP PAUSES TARIFFS FOR 90 DAYS ON DOZENS OF COUNTRIES, RAISES RATE ON CHINA TO 125%
Wednesday saw about 30 billion shares change hands, the heaviest volume day in 18 years of Wall Street keeping records. The S&P 500 had its third biggest single-day rise since World War II.
The stock market recuperated from a volatile week after Trump announced the 90-day pause. On Tuesday, the stock market had lost nearly $6 trillion.
“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.
Wall Street analysts are optimistic about the rise but caution with the tariffs still not gone yet.
“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,” Adam Crisafulli, Vital Knowledge founder, told CNBC. “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.”
There was investor fear that the tariffs would only further escalate. Trump said that investors were too jumpy. “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,” he said.
GOLDMAN SACHS WALKS BACK RECESSION PREDICTION AFTER TRUMP PAUSES TARIFFS
After increasing their projection for the likelihood of a recession to 45% Monday, Goldman Sachs has walked back their projection after Trump’s announcement Wednesday.
The president said at market open earlier in the day, “THIS IS A GREAT TIME TO BUY!!!”
This article was originally published at www.washingtonexaminer.com
