The U.S. stock market roared back to life today, rebounding sharply from a recent skid after President Donald Trump announced a 90-day pause on most of his recently imposed tariffs. The S&P 500, which found a bid around the key technical level of 4,800 earlier this week, surged 9.52% to close at 5,456.90, its biggest single-day gain since 2008. The Dow Jones Industrial Average climbed 7.87%, adding 2,962.86 points to finish at 40,608.45, while the Nasdaq Composite soared 12.16% to 17,124.97, marking its strongest day since January 2001. Even gold joined the rally, rising 3.99% to $3,109 per ounce, and Apple Inc. (AAPL) rocketed 15.3% to $198.85, reflecting a broad-based bid across assets.
The rally comes after a brutal stretch for markets, driven by fears over Trump’s aggressive tariff rollout, which had slapped a 104% duty on Chinese imports and steep levies on other trading partners. Major banks like Goldman Sachs, JPMorgan Chase, and Citi had sounded the recession alarm, with forecasts pointing to a 2025 downturn as supply chains buckled and inflation loomed. The S&P 500 had cratered to around 4,800—a critical support level watched by traders—before today’s announcement flipped sentiment on its head.
Trump’s pivot, detailed in a midday social media post, excluded China—where tariffs jumped to 125%—but slashed rates to a universal 10% for other nations and granted the 90-day breathing room. “These Countries haven’t retaliated, so I’ve authorized a PAUSE and a lowered 10% Reciprocal Tariff, effective immediately,” he wrote. The move ignited a frenzy on Wall Street, with the SPY ETF tracking the S&P 500 gapping up at the open and holding gains through a high-volume session. The DIA ETF, mirroring the Dow, followed suit, while AAPL’s surge underscored tech’s outsized role in the rebound.
“Everything’s getting bid up—it’s a classic relief rally,” said Lisa Tran, chief strategist at Tran Capital. “The banks were braced for a tariff apocalypse, and now they’re eating crow. That 4,800 level held like a champ, and the market’s running with it.” The CBOE Volatility Index (VIX), Wall Street’s fear gauge, cratered over 35% after spiking earlier this week, signaling a rapid unwind of panic.
Not everyone’s convinced the party will last. “This is a sugar high,” cautioned Dr. Mark Hensley, an economist at UCLA. “A 10% tariff still bites, and China’s retaliation could drag us back down. The recession risk isn’t dead—it’s just napping.” Gold’s climb to $3,109—reflected in the GLD ETF—hints at lingering safe-haven demand, even amid the equity surge.
For now, though, the mood is buoyant. Traders reported a chaotic session, with buy orders piling in as the S&P 500 blasted past resistance levels. “It’s like the market exhaled,” said NYSE floor trader Sam Patel. “That 4,800 bid was the line in the sand—once it held, the bulls took over.” With 90 days to negotiate, the focus shifts to whether Trump can turn this truce into a lasting win—or if today’s gains are just a head fake before the next storm.
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