Stocks skyrocketed Wednesday after President Donald Trump announced a 90-day pause on many of the wide-ranging tariffs that had been imposed just hours earlier.
The Dow Jones Industrial Average closed 7.9% higher, a gain of nearly 3,000 points, while the S&P 500 and tech-heavy Nasdaq Composite jumped 9.5% and 12.2%, respectively. Before the afternoon announcement, stocks had been bouncing between gains and losses, after two extraordinarily volatile sessions in which major indexes swung wildly as investors awaited the implementation of the tariffs and possible responses from leading U.S. trade partners.
On a percentage basis, Wednesday was the best day for the S&P 500 since October 2008 during the Great Recession. The Nasdaq posted its biggest one-day gain since January 2001 at the height of the Internet Bubble, while the Dow turned in its best performance since the early days of the Covid pandemic in March 2020.
Heading into Wednesday, the S&P 500 had lost 12% of its value over the four sessions since President Trump announced his plan to impose sweeping tariffs on almost every country, with some major trading partners—including China, Japan and the European Union—subject to particularly high levies.
Those so-called “reciprocal” tariffs went into effect at midnight, prompting China to respond this morning by raising its tariff on U.S. imports to 84%. The brewing trade war had sparked concerns among economists and investors that economic growth will screech to a halt and corporate profits will be eroded.
At 1:18 p.m. ET Wednesday, Trump announced on his Truth Social platform a 90-day pause of the varying “reciprocal” tariffs and instated a 10% base tariff for all countries. He also said that the U.S. would immediately raise the tariff on imports from China to 125%.
Shares of the world’s largest technology companies soared on the news, led by a 23% gain for EV maker Tesla (TSLA). Chipmakers Nvidia (NVDA) and Broadcom (AVGO) were each up more than 18%, while Apple (AAPL) and Meta Platforms (META added about 15%, and Microsoft (MSFT), Alphabet (GOOG) and Amazon (AMZN) rose more than 10%.
Among other notable tech names, data analytics software provider Palantir (PLTR) jumped 19%, while chipmakers Intel (INTC) and Advanced Micro Devices (AMD) surged 19% and 24%, respectively.
Airline stocks were among the top gainers in the S&P 500, with Delta (DAL) and United Airlines (UAL) up 26% and 23%, respectively. Other travel-related stocks also soared, as shares of Expedia (EXPE) and Norwegian Cruise Line (NCLH) each advanced 18%.
Bank stocks—which had been under pressure as JPMorgan Chase (JPM) CEO Jamie Dimon, speaking on an interview this morning with Fox Business, said that a recession is a “likely outcome” from the tariffs—moved higher after Trump’s announcement. JPMorgan was up 8% and Citigroup (C) rose 9%, while Bank of America (BAC) and Wells Fargo (WFC) each gained more than 6%. Bank earnings reporting season kicks off on Friday.
West Texas Intermediate futures, the U.S. crude oil benchmark, were up 4.7% at $62.40 per barrel recently, after hitting a new four-year low this morning of just above $55 as concerns grew about a slowdown in global demand. Gold futures rose 4.1% to around $3,110 an ounce.
Bitcoin was trading at $82,200, up from around $77,000 just before Trump’s announcement, giving crypto related stocks a boost. Strategy (MSTR), the major holder of bitcoin that until recently was known as MicroStrategy, surged 25%.
The yield on the 10-year Treasury was at 4.34% recently, down from an earlier high of 4.52%, its highest level since mid-February, but up from 4.26% at yesterday’s close. Analysts have said that recent unusual moves in Treasurys could have stemmed from traders seeking out liquidity, Chinese investors dumping Treasurys or hedge fund maneuvering.
Airlines, Cruise Stocks Soar on Tariff News
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Travel-related stocks were among the big gainers on Wednesday following news of the delay in tariffs.
United Airlines (UAL) was among the best-performing stocks in the S&P 500 Wednesday, with shares leaping 26%. Delta Air Lines (DAL) was close behind; its shares were up more than 23%.
Cruise operators Norwegian Cruise Line Holdings (NCLH) and Carnival (CCL) jumped 18% and 17%, respectively.
Delta on Wednesday reported better-than-expected first-quarter results but pulled its earnings outlook in light of uncertainty about tariffs and the economic outlook. CEO Ed Bastian warned that leisure and business travel demand stalled in late February, and said recent consumer behavior resembled what would be expected during a recession.
Airlines and cruise operators are less directly affected by high tariffs than companies that produce and sell goods. But their services are highly discretionary, making them vulnerable to economic slowdowns and cratering consumer confidence, which has recently slumped to its lowest level since 2022.
U.S. airlines are also facing lower demand from international travelers, some of whom are forgoing American vacations in light of the Trump administration’s antagonism toward U.S. allies like the European Union and Canada. Trump’s severe crackdown on immigration has also put off some prospective travelers and prompted several countries to issue warnings about traveling to the U.S.
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Goldman Sachs Scraps Recession Call After Trump’s Surprise Tariff Pause As Wall Street Marks Strongest Day Since 2008
Zinger Key Points
- Goldman Sachs scraps recession call hours after Trump’s 90-day tariff pause stuns Wall Street and cools trade fears.
- Trump enforces 125% tariffs on China, offers 10% minimum to allies, signaling a dual-track trade negotiation strategy.
- Wall Street veteran Chris Capre is going live April 9 at 6 PM ET to reveal a short-term strategy that just returned 195%—in the middle of a crashing market.
In a stunning U-turn, Goldman Sachs has officially withdrawn its call for an outright U.S. recession, issued just hours before President Donald Trump stunned markets with a surprise announcement of a 90-day tariff pause for countries that have not retaliated against U.S. trade measures.
The move underscores the immediate and far-reaching implications of Trump’s announcement, which caught Wall Street experts off guard.
“We are reverting to our previous non-recession baseline forecast, with GDP growth of 0.5% and a 45% probability of recession.” Goldman Sachs chief economist Jan Hatzius wrote in a late day note.
Goldman now sees 0.5% U.S. GDP growth in 2025 and a 45% probability of recession—down from the full recession baseline forecast it published earlier that same day.
The bank still expects three 25-basis-point Fed “insurance cuts” in June, July and September but sees a less dire macro trajectory, thanks to the tariff pause and signs of trade stabilization.
The revised forecast reflects Trump’s differentiated strategy: escalate pressure on China while opening a negotiation path for allies who’ve held fire.
Trump announced a 10% minimum reciprocal tariff for non-retaliating nations; sector-specific tariffs of up to 25% are still expected. He confirmed that tariffs on Chinese imports will be 125%.
Commerce Secretary Howard Lutnick confirmed the scale of the pivot, writing on X that he and Treasury Secretary Scott Bessent were with Trump as he drafted the announcement, calling it “one of the most extraordinary Truth posts of his presidency.”
To reporters outside the White House, Trump was blunt. “Somebody had to do it. It had to stop because it’s not sustainable. Last year, China made $1 trillion off trade with the United States. Now I’ve reversed it.”
Trump also floated the idea of tariff exemptions for certain U.S. companies and added that “China wants to make a deal.”
Billionaire hedge fund manager Bill Ackman hailed Trump’s maneuver as “brilliantly executed,” adding: “Every U.S. company that sources products in China is now finding alternative suppliers. Supply chains are sticky. Tick tock.”
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