Washington:
Wall Street stocks soared to close significantly higher on Wednesday, with dramatic gains across all three major indexes as U.S. President Donald Trump delayed imposing steep new tariffs just hours after they took effect.
The Dow Jones Industrial Average surged 7.9 percent to 40,608.45, while the broad-based S&P 500 Index rallied 9.5 percent to 5,456.90.
The tech-focused Nasdaq Composite Index jumped 12.2 percent to 17,124.97.
All three indexes rebounded Wednesday afternoon after Trump announced a 90-day pause on country-specific tariffs that had taken effect earlier that day, excluding tariffs on Chinese goods.
Instead, affected U.S. trading partners, excluding China, would face a temporarily reduced tariff rate of 10 percent, reverting to a level that had been implemented over the weekend, though even that had already caused market turmoil.
However, Trump singled out China, the world’s second-largest economy, stating that its tariff rate would be raised to a prohibitive 125 percent “based on the lack of respect that China has shown to the world’s markets.”
“When markets are pricing in worst-case scenarios, it doesn’t take much good news to turn that opinion around,” said Art Hogan of B. Riley Wealth Management.
He added that investors were waiting for signs of a more reasonable trade process, suggesting that this situation might “be less of a drag on economic activity and earnings.”
But he cautioned that “China will become hyper-aware of the fact that they’re now being isolated in this process.”
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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