Investors in United States of America stocks recorded a significant gain amounting to $4.8 trillion on Wednesday, hours after President Donald announced a 90-day reciprocal tariff pause for countries except China.
The US rallied around Trump's announcement as the market closed Wednesday on bullish territory after days of decline.
Done Jones market data confirmed that US stocks recorded an historic comeback with a $4.8 trillion increase in market cap.
Accordingly, the S&P 500 surged 8.9 percent. The Nasdaq Composite rallied about 11 percent. The Dow jumped 2,756 points, or 7.2 percent.
In a sharp reaction, Goldman Sachs economist Jan Hatzius reversed the projection that the US may see a recession as a baseline case.
This is the case as Goldman Sachs reverted to a base case that includes 2025 fourth-quarter gross domestic product growth of 0.5 percent and a 45 percent probability of a recession.
Asian stocks also experienced the feel-good effect after Trump's tariff pause, with Japan’s Nikkei 225 and South Korea’s KOSPI opening about 7 percent and 5 percent higher, respectively.
Similarly, the Shanghai Composite rose 0.6 percent to climb above 3,200, while the Shenzhen Component jumped 3.2 percent to 9,840.
However, the Chinese currency, the yuan, on Wednesday against the US dollar.
Recall Trump had on Wednesday confirmed the kickoff of a 104 percent tariff on Chinese goods.
In retaliation, China slammed an 84 percent tariff on US goods.
However, in a sudden move on Wednesday, Trump announced a 90-day reciprocal tariff pause for countries except China.
Thereafter, they went to increase the reciprocal tariff on China to 125 percent. Beijing has vowed not to double down in its trade war with the US.
