Quick Hit:

Markets staged a dramatic rebound Wednesday after President Donald Trump paused many of his Liberation Day reciprocal tariffs. The S&P 500 soared 7%—its biggest single-day jump in five years—while the Dow surged over 2,300 points.

Key Details:

• In a Truth Social post Wednesday afternoon, Trump declared a “90 day PAUSE” on reciprocal tariffs, cutting the rate to 10% for countries that had not retaliated, but confirmed the China tariff would jump to 125% “effective immediately.”

• Treasury Secretary Scott Bessent later clarified that the rollback covers most trading partners except China, and excludes sector-specific tariffs. Bessent also added he would be taking a lead role in upcoming negotiations.

• Apple, Nvidia, and Walmart—among the companies most impacted by the trade standoff—rallied sharply, rising 7%, 10%, and 9%, respectively.

Diving Deeper:

U.S. stocks bounced back in a big way Wednesday, driven by President Donald Trump’s decision to hit pause on many of his Liberation Day reciproca tariffs. The S&P 500 soared 7%, the Dow Jones Industrial Average jumped more than 2,300 points, and the Nasdaq Composite rallied nearly 9% by 2pm ET.

The rally came minutes after Trump announced the tariff relief via Truth Social, writing: “I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.” But Trump made clear that the tariff on China would rise dramatically to 125%, citing Beijing’s “lack of respect” for global trade rules.

Treasury Secretary Scott Bessent reportedly clarified that all countries except China would see a rollback to the 10% baseline as negotiations proceed. He emphasized that the pause would not apply to industry-specific tariffs, many of which remain in place. Bessent also announced he would lead upcoming trade talks personally, signaling a hands-on approach from the administration.

Investors reacted swiftly. Tech and retail names, which had suffered the steepest losses during the tariff fight, led the rebound. Apple stock jumped 7%, Nvidia surged 10%, and Walmart climbed 9%.

The broader rally was amplified by Trump’s public encouragement Wednesday morning, when he told investors it was “a great time to buy.” Markets had been under intense pressure in recent sessions, with the Dow losing more than 4,500 points across the previous four days and the Nasdaq sliding more than 13%.

Even with Wednesday’s gains, major U.S. indices remain close to bear market territory. The S&P 500 has dropped nearly 19% from its February highs, needing just a 1.35% further decline to hit the 20% threshold that defines a bear market.