4:10pm: Markets rally on tariff relief
President Trump's announcement of a 90-day tariff pause provided much-needed relief after a period of volatility driven by escalating trade tensions.
At the closing bell, the Dow soared to 40,608, climbing 2,963 points or 7.9%, as industrials and financials led the rally. The S&P 500 followed suit, closing at 5,457, up 474 points or 9.5%, marking one of its best single-day performances in recent years. The tech-heavy Nasdaq surged 1,857 points to 17,125, a remarkable 12.2% increase, as investors flocked to growth stocks in response to a favorable economic outlook.
Small-cap stocks also enjoyed a strong rally, with the Russell 2000 rising 157 points or 8.9%, reflecting optimism for domestic-focused companies.
Investors interpreted the announcement as a sign that trade negotiations could lead to lower effective tariff rates, spurring renewed buying activity. Strong performances from tech and consumer discretionary sectors, with companies like Apple and Nvidia seeing double-digit gains, highlighted investor confidence in growth stocks.
Bill Adams, Chief Economist at Comerica Bank, noted that the pause offers some relief, he cautioned that uncertainty surrounding trade policies would continue to weigh on business decisions in the near term.
"Businesses will be relieved that the destination for trade policy looks like it could be less disruptive than seemed possible yesterday.
"Even so, the huge overhang of policy uncertainty will weigh on investment and weak decisions in the next few months."
3:45pm: US-China trade war a reality
Analysts warn that the full-scale trade war between the US and China, sparked by President Donald Trump's decision to raise tariffs on Chinese imports to 125%, will have far-reaching consequences for global markets, businesses, and investors.
Nigel Green, CEO of deVere Group, described the escalation as sharp and unmistakable, stressing that the conflict will affect every major asset class, industry, and economy.
Green cautioned that this period will be marked by profound volatility, risk, and opportunity, and emphasized that the myth that trade wars are easy to win has been shattered, with no clear winners emerging from the clash between the world's two largest economies.
“Sharp rallies on the slightest hint of diplomacy will be followed by brutal sell-offs when hostilities deepen,” Green warned. “The US-China trade war is no longer a risk—it’s a reality. And those who adapt fastest will not only protect their wealth—they will find opportunities others miss.”
3:11pm: Markets roaring
Markets roared back to life Wednesday after US President Donald Trump announced a 90-day pause on tariffs for countries that have not retaliated against the United States — a move that analysts say marks the beginning of a possible retreat from the administration’s hardline trade stance but leaves lingering uncertainty over long-term global economic stability.
Nearly every stock on the S&P 500 are rallying after the announcement, highlighting how much of a driver tariffs have been for markets in recent days.
Dan Ives, managing director at Wedbush Securities, said the move was “the news we and everyone on the Street was waiting for,” following a week of market chaos and surging bond yields.
“It’s been an epic debacle over the last week in the Beltway and real damage has already been done to the economy,” Ives said. “But China remains the key obstacle to figure out and this greatly impacts the US tech industry and consumers on a daily basis.”
2:17pm: Room for hope
Monday's 90-day pause headline wasn't entirely inaccurate, said Chris Beauchamp.
“President Trump’s announcement of a 90 day pause for all other countries save China has seen stocks leap higher on what might be called the biggest relief rally since Covid," Beauchamp wrote.
"It looks like the president has finally bowed to pressure, though in his inimitable style he is spinning it as a generous gesture to the world in response to others approaching Washington for negotiations.
"The size of the surge shows how desperate investors were for a deal, and gives hope that there is light at the end of the tunnel.”
1:30pm: Trump announces 90-day pause
Stocks soared on Wednesday afternoon after President Trump announced a 90-day pause on tariffs and a temporary reduction in reciprocal tariffs to 10%.
The S&P 500 jumped over 7%, the Nasdaq nearly 9%, and the Dow gained more than 2,400 points, or over 6%.
Trump also said tariffs on China would eventually rise to 125%. Meanwhile, the 10-year Treasury yield briefly climbed near 4.5%, marking its largest three-day rise since 2001.
12:50pm: Nasdaq rallies
Equities are proving resilience midday, with the Nasdaq leading the rally, up 1.5%, as mega-cap tech stocks like Apple, Nvidia, and Tesla continue to outperform despite ongoing trade war tensions.
The Dow gained 0.4%, reflecting steady recovery amid broader market optimism, while the S&P 500 rose 0.6%, supported by strong performances in technology and healthcare.
While global markets remain under pressure due to escalating US-China tariffs and concerns over slowing economic growth, investors remain optimistic about corporate earnings, particularly in the tech sector, driving the indices higher despite the broader global uncertainty.
11:48am: Trump: great time to buy
President Donald Trump took to Truth Social, posting a message urging optimism among investors.
“THIS IS A GREAT TIME TO BUY!!!” Trump wrote, following up with a message of reassurance: “BE COOL! Everything is going to work out well.
"The USA will be bigger and better than ever before!”
11:03am: Sell-off continues
The Treasury yield curve, measured by the 2Y/10Y spread at around 0.60, is now at its steepest since 2022—reversing its previous flattening and inversion. Adding to the pressure, Tuesday’s 3-year Treasury auction was notably weak, with the government forced to offer higher yields to attract buyers, but demand still fell short.
Lawrence Gillum, Chief Fixed Income Strategist for LPL Financial, called it a "perfect storm of bad news" for Treasury markets.
"Sticky inflation, a patient Fed, potential foreign buyer boycotts, hedge fund deleveraging, rebalancing out of bonds into cash, and an illiquid Treasury market are all reasons why Treasury yields continue to move higher," Gillum commented.
"Of the aforementioned reasons for the selloff though, we would argue the larger cause is the unwinding of the basis trade and not foreign investors selling bonds to retaliate against tariffs since the selloff really began in earnest after the “fake news” about a 90-day delay in tariffs sent equity prices soaring."
10:25am: Treasury sell-off
The sharp sell-off in US Treasuries on Wednesday signals a troubling shift, suggesting they may no longer be the ultimate safe haven for investors, according to deVere Group CEO Nigel Green.
The 10-year yield spiked to 4.51% before settling at 4.42%, up 16 basis points in a single day, while the 30-year yield crossed the key 5% mark. Just days earlier, the 10-year yield was below 3.9%, underscoring the market's rapid reassessment.
As new US tariffs took effect, Treasury yields surged, which Green posits highlights a sudden loss of confidence.
Green warned the fallout could ultimately threaten the US dollar's dominance.
“The so-called safe haven has been stripped bare,” Green said.
“US Treasuries are behaving more like a high-risk asset than the traditional ballast investors once relied upon.
“The turbulence in Treasuries is globalizing fast. Borrowing costs in the UK and Japan also jumped sharply, showing the disruption isn’t confined to American shores. The asset that once served as the anchor for world markets is now sparking instability.”
9.49am: Wall Street makes volatile start
Tech stocks on Wall Street charged higher in a bullish comeback to China hiking tariffs to 84% on US goods, but initial gains have already been trimmed.
The tech-powered Nasdaq jumped over 1.5% as first trades were completed, but this has eased to a 0.9% gain.
For the blue-chip Dow Jones, the start was in the red, turned green, then fell back into the red, down 0.4% as healthcare, pharma, oil and banks all dropped.
The broader S&P 500 made similar progress, starting just below flat, jumping higher, then quickly returning to flat in the opening few minutes.
Among the largest stocks, Microsoft was up 0.6%, Apple up 1.6%, Nvidia up 2.4% and Amazon up 0.7%.
9.15am: Bessent speaks after China hikes US tariffs to 85%
US stock futures and those in Europe are being trimmed slightly, as the market mulls China's response. The US dollar is dropping, with the DXY dollar index down 0.8% to a little over 102, while
After dropping 300 points at one stage, the FTSE 100 has improved a little.
Dow futures are now down 1.2%, while S&P futures are showing a 0.75% decline and Nasdaq futures just 0.3%.
US Treasury Secretary Scott Bessent has been asked about China’s move to increase its tariff on US goods to 84%.
"I think it’s unfortunate that the Chinese actually don’t want to come and negotiate because they are the worst offenders in the international trading system," he told Fox News.
"They are the surplus country," he said. "Their exports to the US are five times our exports to China. They can raise their tariff, but so what?"
Bessent also said China should not devalue its currency as a response to the tariffs, as "that is a tax on the rest of the world and everyone will have to keep raising their tariffs to offset the devaluation".
"So I would urge them not to do that and to come to the table," he said.
8.10am: US stocks set to tank, led by Dow
US stock market futures had a rollercoaster morning ahead of the opening bell on Wall Street after Donald Trump's 'reciprocal' tariffs came into effect overnight, and China retaliated.
China's response today started with included calls for dialogue and criticism of "bullying" tactics from Washington, while also criticizing the width of American ports and the quality of its rice, before later revealing an 84% tariff on US goods.
The Dow Jones was set for a 700-point decline at the open, with futures down 1.9% as the index's energy names are likely to drag due to a fall in crude prices today.
Futures for the S&P 500 were down 1.8% and those for the Nasdaq 100 were down 1.3%.
The decline started overnight, when confirmation from the Trump administration that levies on Chinese imports would jump to 104% saw Wall Street stocks erase earlier gains and finish with the Nasdaq down 2.5%, the S&P falling 1.6% and the Dow losing 0.8%.
Market reactions around the world have included sharp falls in Europe, with the FTSE 100 down 3.8% and the DAX down 4% in Germany.
US WTI oil prices were down 5.4% to $56.3, the lowest since early February 2021. Gold was up 2.9% to $3065.27.
Analysts also flagged a rise in government bond yields.
David Morrison at Trade Nation says while the Wall Street sell-off has taken valuations down, particularly in the case of tech companies, "there are fears that amid the ongoing uncertainty, and the likelihood of severe reprisals, particularly from China, that there could be worse to come".
"Certainly, it seems unlikely that the Trump administration is going to back down, just because some froth has been blown off overpriced stocks."
Morrison noted that bond prices, which had soared last week and sent yields tumbling in the immediate aftermath of Trump’s tariff announcement, "made sense from a ‘flight to safety’ point of view, as US Treasuries are viewed as the safest asset out there".
"But prices have subsequently collapsed", sending yields rising again, with the yield on the 10-year Treasury rising from the six-month low of 3.86% last week to above 4.42% this morning.
"This was one of the sharpest yield moves in twenty years, prompting analysts to speculate why the huge bond sell-off?
"A benign explanation would be that investors have gone from expecting the Fed to cut interest rates (so yields fall) in response to falling economic growth, to increasing them as tariff-led inflation takes hold," says Morrison.
"But even then, such a swift change in emphasis seems highly unusual. Instead, it could be something far more serious, including forced liquidations from overleveraged bond players (similar to the LTCM disaster in the 1990s), or an indication that recent market stresses have damaged the plumbing on which the financial markets are based."