U.S. Stocks Rebound 0.56% as Trump Announces 90-Day Tariff Pause

On Wednesday, the U.S. stock market experienced a significant rebound, recovering from earlier losses and posting universal gains across the board. The Nasdaq Composite Index rose by 0.79%, while the S&P 500 Index increased by 0.56%. This rally came after a tumultuous Tuesday, where the S&P 500 and Nasdaq Composite reversed gains of over 4% to fall around 1.6% and 2.2%, respectively. The Dow Jones Industrial Average slid roughly 0.8%, falling just over 300 points. The market's volatility was attributed to the White House's announcement of a threat to bring the overall tariff rate on China to 104%, which was set to go into effect at 12:01 a.m. ET.

The market's initial boost came from Treasury Secretary Scott Bessent's announcement of bilateral trade talks with Japan, which alleviated fears about the White House's preparedness to negotiate tariffs. However, the White House confirmed that reciprocal tariffs would still go into effect on Wednesday as planned, even while negotiations were underway. China responded by vowing to "fight to the end" if the US continued to pursue what Beijing authorities described as "blackmail."

The rally on Wednesday was driven by President Trump's announcement of a 90-day pause on tariffs for most countries, except for China. This move provided a significant boost to the market, with the S&P 500, Nasdaq 100, and Russell 2000 all surging. The total crypto market cap also rose 1.42%, reaching $2.51 trillion, representing an 8% recovery from the previous day's lows. This surge in cryptocurrency stocks was part of a broader recovery in the market, driven by the positive news from the White House.

Cryptocurrency-related stocks saw universal gains, with Coinbase (COIN) up 2.56%, Trump Media & Technology Group (DJT) up 0.8%, MicroStrategy (MSTR) up 4.93%, MARA Holdings (MARA) up 4.3%, Riot Blockchain (RIOT) up 2.3%, and Hut 8 Mining Corp. (HUT) up 2.6%. Most U.S. tech stocks were also up, with Microsoft (MSFT) up 0.88%, Apple (AAPL) up 0.47%, Google (GOOG) up 1.84%, NVIDIA (NVDA) up 2.58%, Meta Platforms (META) down 1.12%, Amazon (AMZN) up 0.04%, and Tesla (TSLA) down 0.8%.

The rally was also supported by statements from top names on Wall Street, who had started warning about the effects of Trump's tariffs. Even Tesla CEO and Trump adviser Elon Musk had offered gentle critiques over the past few days. The market's recovery was a testament to its resilience in the face of geopolitical tensions and uncertainty. The rally on Wednesday was a clear indication that the market was ready to move forward, despite the challenges posed by the tariff situation.