The Dow Jones Industrial Average surged nearly 3,000 points on Wednesday, spurred by President Donald Trump’s announcement of a 90-day suspension on reciprocal tariffs for selected countries. This announcement came despite an increase in tariffs on Chinese goods to 125%, a move that provoked retaliatory actions from both China and the European Union. Interestingly, the stock market appeared largely unfazed by these ongoing trade tensions.
Leading the rally were tech giant Nvidia and aerospace manufacturer Boeing, both contributing significantly to the Dow’s impressive climb. Apple and Tesla also saw substantial gains, further buoying investor sentiment.
By the close of trading, the Dow had increased approximately 2,963 points, marking a remarkable 7.9% uptick and pushing it past the 40,000 benchmark. The S&P 500 rose by 9.5%, breaking a streak of four consecutive down days, while the Nasdaq outperformed with a staggering 12.2% increase—though it still lingered below essential daily moving averages. This momentum extended to small caps, with the Russell 2000 index rebounding 8.5%.
Trading volume was noticeably higher on both the New York Stock Exchange and Nasdaq compared to the previous day, tipping the scales in favor of advancers to decliners by a wide margin. Notably, the 10-year Treasury yield spiked nine basis points to 4.35%, indicating a shift in investor expectations, while the tech-focused Innovator ETF boasted nearly a 7% gain.
Analysts noted that the top-performing tech stocks, often referred to as the “Magnificent Seven,” were poised to collectively gain over $1 trillion in market capitalization on this robust trading day.
In broader economic discussions, minutes from the Federal Reserve’s March meeting revealed a consistent growth in the economy alongside persistent inflation concerns. Richmond Fed President Tom Barkin highlighted the importance of monitoring consumer spending for any signs of economic deceleration. Neel Kashkari from the Minneapolis Fed pointed out that the uncertainty around tariffs has raised the threshold for changing the federal funds rate.
On the stock front, Trump Media & Technology experienced noticeable gains, while Nvidia saw a significant jump of over 16%, albeit still hovering below key moving averages amid ongoing trade-related risks. Meanwhile, Apple managed to recover after a four-day slump, reclaiming its status as a leading company by market cap after a recent downturn.
Walmart’s shares also experienced a boost despite the retail giant widening its operating income outlook for the current quarter due to tariff implications on imported goods. Analysts emphasized Walmart’s strong position in domestic sourcing as a buffer against the potential hit from tariffs.
Boeing’s stock continued its upward trajectory, while Tesla, despite soaring, still found itself below key technical thresholds. Analysts from Benchmark expressed that recent challenges in sales were overstated, expecting significant upside potential for the company.
In addition, gold stocks witnessed a rally, with notable gains among major gold producers. The dynamics within the sector reflect a shift toward safe-haven assets amid fluctuating market conditions.
As traders look ahead, key economic indicators, including the Labor Department’s upcoming inflation report, may further influence market sentiment. Anticipated figures suggest a modest monthly increase in inflation alongside a year-on-year rise that could keep policymakers on alert.
Delta Air Lines recently reported sales of $14 billion for the March quarter, exceeding analyst estimates. However, the airline’s outlook hinted at flat sales growth, reflecting the prevailing uncertainties in current market dynamics.
As earnings season ramps up, major financial institutions are set to report this Friday, with investors keenly awaiting insights that could shape market trajectories in the days to come.
