Megacap Stocks Surge as Trump Announces 90-Day Pause on Tariffs

Megacap stocks rallied after United States President Donald Trump announced a 90-day suspension of tariffs for over 60 trading partners, excluding China. The Dow Jones Industrial Average soared by 2,000 points—its highest leap in five years—while the S&P 500 and Nasdaq Composite gained over 3% each in early trade.

 

Tech behemoths Tesla, Nvidia, and Meta led the way, as they benefited from renewed investor sentiment. Trump's decision to lower reciprocal tariffs to 10% during the time of the hiatus has eased fears of a global trade war, boosting market sentiment. Tariffs on Chinese imports were raised to 125%, though, as tensions with Beijing continued to fester.

 

Analysts believe the timeout can soothe markets in the short term, but doubt remains with global trade negotiations stalled. Investors are watching developments closely for longer-term implications for corporate earnings and economic growth.

Source: CNBC, Reuters, Politico