- Trump pauses so-called "reciprocal" tariffs for 90 days.
- NASDAQ Composite explodes 10% higher as Trump pauses severe bilateral tariffs.
- Trump administration keeps 10% worldwide tariff in place.
- S&P 500 and Dow Jones also spike above 7%.
In one the most volatile sessions in living memory, the NASDAQ Composite spiked as much as 10% on Wednesday after US President Trump surprised everyone with a sudden 90-day pause on US tariffs. The tech-heavy index shot up as much as 10% to 16,752 from an intraday low of 15,270.
Prior to the rally, the NASDAQ Composite had traded flat for part of the session. The Dow Jones Industrial Average (DJIA) and S&P 500 also spiked more than 7% on the news.
Trump halts US tariff policy for 90 days
In a certain sense, it would seem that the world beat Trump in round one of this trade war. US stock market indices sold off en masse in the three sessions following Trump's new tariff policy that was first announced last Wednesday. Wall Street denounced the policy broadly, and some of Trump's allies like Elon Musk disparaged his trade advisor Peter Navarro. It appears the gambit worked.
Trump relented on Wednesday after only a week. Under the new policy, the Trump administration will stick to its 10% broad-based tariff rate on all foreign imports but delay its much higher rates, such as 24% on Japan and 46% on Vietnam, for the time being.
However, Trump didn't budge on China, and instead, he announced a 125% tariff rate on Chinese goods due to that nation's response of announcing its own 34% additional tariff to US goods. The proposed base rate had been 104% on Chinese goods as of Tuesday, following several rounds of new tariffs.
On Wednesday morning, China announced that it would ditch its initial 34% added tariff rate on US goods and instead go with an 84% rate.
NASDAQ Composite daily index chart
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