U.S. Stocks Soar $4.8 Trillion After Trump’s Tariff Pause

|By Adekunle Adejumo –

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Investors in U.S. stocks gained a massive $4.8 trillion on Wednesday after former President Donald Trump announced a 90-day reciprocal tariff pause for all countries—except China. The bold economic move ignited a sharp rally across Wall Street, signaling a dramatic reversal in market sentiment.

The U.S. market surged into bullish territory after days of losses, with the S&P 500 climbing 8.9%, the Nasdaq Composite leaping 11%, and the Dow Jones Industrial Average spiking by 2,756 points, or 7.2%. The turnaround marked one of the strongest single-day recoveries in recent years.

According to Dow Jones market data, U.S. stocks recorded a historic comeback, wiping out days of declines and sparking renewed investor confidence.

Reacting swiftly to the market shift, Goldman Sachs economist Jan Hatzius reversed the bank’s earlier prediction of an imminent U.S. recession. Goldman Sachs now projects a modest 0.5% GDP growth in Q4 2025 and lowered the recession probability to 45%.

The global ripple effect was immediate.

Japan’s Nikkei 225 surged 7%, South Korea’s KOSPI climbed 5%, while China’s Shanghai Composite rose 0.6% and the Shenzhen Component jumped 3.2% to 9,840. Despite the positive stock momentum, China’s yuan slumped to its weakest level in 17 years against the U.S. dollar.

Wednesday’s market celebration followed Trump’s announcement of a new 104% tariff on Chinese goods. China fired back with an 84% tariff on U.S. exports. But in a strategic pivot, Trump eased tariffs for all other trade partners—excluding China—and later increased China’s tariff burden to 125%.

Beijing, while condemning the move, has vowed not to escalate the trade war further.