U.S. stocks had one of their best days in history on Wednesday after President Donald Trump’s announcement of a temporary pause on tariffs to most of the countries.
The S&P 500 surged 9.51%, recording its biggest daily gain since 2008 after investors felt somewhat relieved from the immediate concern about the global economic impact of U.S. trade policies.
Coming after Wall Street’s biggest four-day percentage loss since the pandemic, the pause came less than 24 hours after having kicked in.
Investors took the opportunity to add beaten-down stocks to their portfolio, and at a bargain. Goldman Sachs also said that it was withdrawing its recession forecast and reverting to its previous baseline estimate for the economy to grow in 2025.
While the Dow Jones Industrial Average surged 2,962.86 points, or 7.87%, to 40,608.45, the S&P 500 climbed 474.03 points, to close at 5,456.80, its highest daily gain since October 2008 when the global financial crisis happened. The Nasdaq Composite also added 1,857.06 points, or 12.16%, to 17,124.97, for its biggest gain since January 2001, after the dotcom market bubble.
The VIX index of implied volatility on Wall Street came down to 33.62, losing more than 35%, registering its biggest one-day decline ever.
(Source: Reuters)
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