US stock market jumps after Donald Trump’s tariff pause; Nasdaq spikes 12%, S&P 500 sees biggest gain since Oct 2008

U.S. stocks experienced one of their strongest days ever, fueled by a surge of optimism on Wall Street after President Donald Trump announced a temporary retreat from most of his planned tariffs—just the kind of news investors had been eagerly anticipating.

The S&P 500 jumped 9.5% on Wednesday, a gain that would typically represent a solid year for the market. The Nasdaq Composite jumped 12 per cent, gaining 1857.06 points to reach 17,124.97. Meanwhile, Wall Street’s other major indexes also saw strong gains, with the Dow Jones climbing 7.9%.

Tesla soared by 41.76 points, marking an 18.82% rise to close at 263.62. Intel advanced 3.08 points, up 16.96% to finish at 21.20. NVIDIA leapt 15.58 points, gaining 16.18% to settle at 111.88. Apple added 17.51 points, a 10.15% increase, ending the session at 189.93, while Amazon rose 16.77 points, climbing 9.83% to close at 187.43.

Earlier in the day, markets were slipping amid concerns that Trump's trade war might push the global economy toward a recession. But everything changed when a social media post delivered the long-hoped-for update, sparking a powerful rally across global markets.

S&P 500'S single-day gain

The S&P 500's largest single-day gain since World War II occurred on October 13, 2008, when it jumped 11.6%. This happened during the height of the Great Recession, a period marked by intense fears of a financial system collapse, as the index was undergoing a steep decline of nearly 57% from its late 2007 peak to its low in March 2009.

Just a few weeks later, the index recorded another historic surge, rising 10.8% in a single day.

US stock markets saw broad gains on Wednesday, with 98% of S&P 500 companies posting increases.

Airlines and other travel-related stocks led the surge, benefiting from optimism that consumers are confident enough to travel for business or leisure.

Delta Air Lines jumped 23.4%, despite having earlier withdrawn its 2025 financial guidance due to trade tensions disrupting forecasts for consumer and business spending, which has impacted travel bookings. Overall, the S&P 500 soared by 474.13 points to reach 5,456.90. The Dow Jones Industrial Average climbed 2,962.86 points to 40,608.45, while the Nasdaq composite rose by 1,857.06 points to 17,124.97.

Meanwhile, international markets in Europe and much of Asia fell, as most closed before President Trump's announcement that influenced U.S. trading.

(With inputs from agencies)

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