With the announcement of a 90-day freeze on proposed tariffs for non-retaliatory nations by President Donald Trump, the S&P 500 leaped a staggering 8%, and the Dow sprang up nearly 3000 points on Wednesday. This pause did not extend to China, however, which is poised to experience a massive 125% tax increase on imported goods.

The market rally was a welcome respite for stocks, which had suffered significant losses throughout the previous week and the initial days of the current week. The global markets had reacted unfavorably to the escalating tension of the brewing trade war as Trump asserts his bold economic overhauls. Trump's decision to halt some tariffs was likely influenced by the uproar from major business and Wall Street figures, some of whom were instrumental in his re-election. Yet, the tension with China continues unabated.

Speaking on the matter, Trump stated on his Truth Social account, "In view of China's disregard for the World’s Markets, I am mandating an immediate increase in the Tariff levied on China by the United States to 125%. I anticipate that China will soon realize that exploiting the U.S.A., and other nations, is no longer feasible or tolerable. In contrast, over 75 Countries have approached United States representatives, including the Departments of Commerce, Treasury, and the USTR, to negotiate a resolution to the topics under discussion relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs. As these nations have refrained from retaliating against the United States as per my strong suggestion, I have authorized a 90-day PAUSE, lowering the Reciprocal Tariff to 10% for this period, also effective immediately. Thank you for your concern in this matter!”

Media and technology stocks basked in the rallying markets' afterglow. Warner Bros. Discovery saw a 20% uplift, ending the day at $9.26, and Disney rose 12% to $91.44. Netflix and Amazon also enjoyed gains of 9% and 12%, closing at $945.47 and $191.10 respectively. Tech behemoths Apple, Meta, Alphabet, Nvidia and Microsoft indeed painted the town green - all recording noteworthy rebounds.

The dust at last settled as the Dow Jones Industrial Average rose by 8% - the largest one-day surge since March 2020. The tech-centric Nasdaq marked its most significant one-day gain since 2001 with a 12% rise, and the S&P 500 saw a 9.5% bounce, which was the first since 2008.

This rally follows days of harsh drops fueled by anxieties that Trump's extensive tariffs would spark a colossal global trade conflict and consequently nudge the U.S. into a financial recession. Notable were the S&P 500 and Dow Jones Industrial Average's substantial declines last Friday, which were their largest one-day dips since June 2020. The Nasdaq Composite also took a hit, sliding 5.8% due to growing fears of the impending tariffs, pushing it into a bearish terrain as it has declined over 20% from its December 2024 peak.