Markets delivered a historic rebound on Wednesday after President Donald Trump stunned markets by announcing a 90-day pause on most reciprocal tariffs. The move unleashed a wave of buying that sent the Dow soaring nearly 3,000 points, the Nasdaq posting its second-best day ever, and the S&P 500 recording its third-largest post WWII gain. More than 30 billion shares changed hands, the heaviest trading day on record, marking a dramatic shift in sentiment after a bruising four-day selloff. While the mood flipped decisively bullish, investors remain wary, with China now facing tariffs of 125% and uncertainty looming beyond the 90-day window.

Key Takeaways:

  • Dow Posts Third-Biggest Jump Since WWII: The Dow Jones Industrial Average soared 2,962.86 points, or 7.87%, to close at 40,608.45, driven by President Trump’s surprise announcement of a 90-day pause on most reciprocal tariffs. The index erased most of its losses from a brutal four-day slide and logged its strongest single-day gain since March 2020. 
  • S&P 500 Skyrockets 9.5% as Sentiment Flips: The benchmark index rallied 9.52% to finish at 5,456.90, marking its third-largest post-WWII advance. The broad-based rally came as market participants scrambled to re-enter beaten-down sectors, pushing the index sharply higher in the final hours of trading. The tariff reprieve removed a major source of short-term uncertainty, triggering buying across all 11 sectors.
  • Nasdaq Stages Historic Rebound on Tech Surge: The Nasdaq Composite surged 12.16% to end at 17,124.97, recording its second-best day ever and the largest jump since January 2001. Apple soared 15%—its best day since 1998—while Nvidia and Meta climbed over 18% and 14%, respectively. 
  • European Markets Slump as Tariffs Take Hold: The Stoxx 600 tumbled 3.5% to its lowest close since January, as US country-specific tariffs came into effect, sparking a wave of risk aversion. Germany’s DAX fell 3% to 19,670.9, the FTSE 100 dropped 2.92%, France’s CAC 40 lost 3.34%, and the FTSE MIB slid 2.75%. All major sectors closed in the red, with healthcare plunging 5.9% and oil and gas down 5%. Traders appeared unconvinced by the market rebound in the US, while the earlier pressure came before Trump’s tariff pause was fully digested by European investors. Trade-exposed sectors led declines, as many regional firms remain vulnerable to the still-active tariffs on China.
  • Asian Stocks Mixed as China Tariff Hits 125%: Japan’s Nikkei 225 dropped 3.93% to 31,714.03, while South Korea’s Kospi fell 1.74%, entering bear market territory. China’s CSI 300 rose 0.99%, and Hong Kong’s Hang Seng added 0.68%, while India’s Nifty 50 dipped 0.39% after a 25 bps rate cut. US tariffs on China rose to 125%, triggering sharp declines in Asian exporters, though mainland equities were supported by domestic policy hopes. The Kosdaq slid 2.29%, while Australia’s ASX 200 closed 1.8% lower.
  • Oil Prices Jump Over 4% on Tariff Relief: US crude surged $2.77, or 4.65%, to $62.35 per barrel, reversing earlier losses after Trump paused tariffs on countries outside China. Brent gained $2.66 to settle at $65.48. Earlier in the day, WTI had fallen to $55.12 before sentiment reversed. The dramatic 13% intraday swing was one of the largest this year. Traders also focused on upcoming US–Iran nuclear talks, which could impact future supply.
  • Yields Volatile After Bond Auction and Tariff Pause: The 10-year Treasury yield ended at 4.31% after spiking above 4.51% earlier in the session. A strong $39 billion auction helped ease concerns about demand, with indirect bidders taking more than 87% of supply. The 2-year yield jumped 17 bps to 3.91% as traders scaled back rate-cut expectations. The 30-year briefly hit 5.02%, the highest level since November 2023, before easing to 4.715%.
  • Bitcoin Surges Over 7% as Risk Assets Rebound: Bitcoin rose more than 7% to $82,305.55, rebounding sharply from earlier lows near $74,567. The move tracked a broader relief rally across equities and crypto, following Trump’s 90-day tariff pause. Other tokens also rallied, with Ether, Dogecoin, and XRP gaining over 12%, and Solana up more than 14%. Crypto-exposed stocks like MicroStrategy (+23%), Coinbase (+17%), and Robinhood (+24%) posted strong gains.

FX Today:

  • EUR/USD Pulls Back but Maintains Key Support Levels: EUR/USD ended the session at 1.0937, down 0.15% after failing to hold earlier gains above the 1.1000 mark. The pair traded within a narrow range between 1.0913 and 1.1094, forming a small bearish candle. Despite the modest retreat, the euro remains in a broader uptrend, holding above the 50-day (1.0663), 100-day (1.0542), and 200-day (1.0738) moving averages. Immediate support stands at 1.0900, with deeper downside risk toward the 1.0730–1.0750 zone. On the upside, a close above 1.1100 would open the door to retest the August 2023 high near 1.1270.
  • GBP/USD Extends Recovery as It Reclaims Key Averages: GBP/USD closed at 1.2805, up 0.31%, continuing its bounce from recent lows near 1.2700. The pair recovered from early weakness and closed just below the 200-day SMA at 1.2811, having already reclaimed the 50-day (1.2746) and 100-day (1.2633) averages. The move suggests buying interest has returned after a midweek dip. Holding above 1.2800 would keep bullish momentum intact, with further upside potential toward 1.3000 and possibly 1.3100. A drop back below 1.2740 could reopen downside pressure toward 1.2630.
  • AUD/USD Surges Over 3% in Sharp Post-Tariff Rebound: AUD/USD ended the day at 0.6144, jumping 3.15% in a forceful recovery off multi-month lows. The pair had fallen more than 4.5% from April 3 to 8 but rebounded after the Fed minutes and Trump’s tariff pause announcement spurred risk-on flows. The rally broke through the 0.6000 level but remains below key SMAs—50-day (0.6277), 100-day (0.6299), and 200-day (0.6489)—which continue to slope downward. The area between 0.6270–0.6300 will act as heavy resistance. Support sits at 0.6000 and then 0.5900, the latter being a critical level that triggered this rebound.
  • USD/CHF Attempts to Stabilise After Steep Decline: USD/CHF closed at 0.8573, up 1.24%, as it bounced from a multi-day selloff that took the pair to a recent low of 0.8330. The recovery brought the price back above the 0.8500 mark but still leaves it well below the 200-day SMA at 0.8800. Resistance lies at 0.8700, followed by the 50-day (0.8893) and 100-day (0.8934) levels. On the downside, support at 0.8400 and the recent low at 0.8330 remain key levels. A break below 0.8330 would confirm continued bearish momentum and open the path toward 0.8200.
  • USD/JPY Climbs but Faces Stiff Resistance Ahead: USD/JPY finished the session at 147.89, up 1.14%, recovering from a recent low of 144.94. The pair remains below the 50-day (150.09), 100-day (152.48), and 200-day (151.13) SMAs, keeping the broader trend negative despite today’s bounce. The 150.00 area is immediate resistance, while support holds around 145.00 and 143.00. The pair will need a decisive break above 150.00 to flip the technical outlook back to bullish. For now, the move appears corrective within a larger downtrend.
  • Gold Rips Higher as Risk Appetite and Inflation Concerns Lift Demand: Gold surged 3.69% to settle at $3,092, recovering sharply from a session low of $2,970. The metal cleared resistance at $3,050 and now trades well above key support levels, with the 50-day SMA at $2,953, the 100-day at $2,809, and the 200-day at $2,680. The rally erased much of April’s earlier pullback, putting a retest of the $3,160 high back on the table. Initial resistance stands near $3,120, followed by the all-time high zone. On the downside, $3,000 and $2,950 serve as strong support zones.

Market Movers:

  • Tesla Jumps as Tariff Pause Sparks Rebound: Tesla soared more than 22% after Trump’s announcement of a 90-day tariff pause eased concerns about global trade. The stock had been under pressure during the recent selloff, making it a key beneficiary of the risk reversal. 
  • Nvidia Leads Chip Rally on Trade Optimism: Nvidia surged nearly 19%, extending gains as chipmakers rebounded sharply from last week’s losses. Investors rushed back into semis following Trump’s decision to exempt most nations from steep tariffs temporarily. 
  • Apple Posts Best Day in Over 25 Years: Apple rallied 15%, marking its best session since January 1998, as tech stocks staged a historic comeback. The company had been battered by trade-related fears but rebounded as Trump’s pause eased uncertainty. 
  • Microchip Technology Soars on Trade Relief: Microchip Technology rallied 27%, leading gains across the S&P 500 and Nasdaq 100. The stock surged after Trump’s 90-day tariff pause triggered a powerful rebound in semiconductors. Short-covering and bargain hunting added fuel to the move.
  • United Airlines and Delta Soar on Tariff Pause: United Airlines jumped 26% and Delta rose 22% as travel and leisure stocks rallied sharply. The tariff pause helped ease fears around international travel disruptions. Airlines had been among the hardest-hit names in the recent selloff.

After one of the most volatile stretches in recent memory, Wednesday’s explosive rebound marked a dramatic turning point for investor sentiment. The sheer scale of the move, both in price and volume, reflected a market eager to reprice risk following Trump’s unexpected tariff retreat. While traders embraced the relief, many remain cautious, recognising that the 90-day pause is temporary and China’s elevated tariff rate remains unresolved. Positioning now hinges on how negotiations unfold and whether policy shifts become more permanent. With inflation data and Fed commentary on the horizon, markets are bracing for another potentially pivotal stretch.