Nasdaq rockets 12% as Wall Street embraces tariff truce
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The Nasdaq Composite staged a monumental rally on Wednesday, surging over 12% in its best session since 2001 and the second strongest in its history. The trigger was a 90-day suspension on most tariffs announced — unconventionally — via a social media post by President Trump, who declared an immediate drop in reciprocal tariffs to 10%, excluding China. The market’s response was electric, fueled further by a now-viral presidential message: “THIS IS A GREAT TIME TO BUY!!!”
Trump’s abrupt shift in trade policy turned into the perfect storm for a euphoric rally. While official communication channels remained silent, investors took the Truth Social post at face value and piled into equities with conviction. The result was a dramatic repricing across the tech sector and beyond, reversing weeks of bearish sentiment in a matter of hours. The rally was as broad as it was deep — and no stock rode the wave higher than Tesla.
Shares of Tesla jumped nearly 23%, reclaiming ground lost in recent weeks after falling over 55% from previous highs. The move marked the company’s strongest single-day performance in years and helped propel the broader tech complex, including Apple, which soared 15% despite persistent tensions with China. The so-called “Magnificent Seven” tech names collectively added over $1.5 trillion in market value in a single session, highlighting the magnitude of investor enthusiasm.
Yet, the geopolitical backdrop remains tense. While most nations saw tariffs lifted, China faced an immediate escalation to 125% after retaliating with its own increase to 84%. Despite this, traders looked past the unresolved trade war narrative, focusing instead on near-term upside and liquidity-driven momentum. The Nasdaq, which had recently entered bear market territory, bounced back with remarkable force — and with it, renewed investor appetite for risk.
Whether this marks the start of a lasting rebound or a sentiment-driven spike remains to be seen. For now, the message from markets is clear: the combination of softened trade rhetoric and political intervention was enough to spark one of the most aggressive one-day rallies in modern market history. Traders will be watching closely to see if policy clarity follows the market euphoria.
Trump’s abrupt shift in trade policy turned into the perfect storm for a euphoric rally. While official communication channels remained silent, investors took the Truth Social post at face value and piled into equities with conviction. The result was a dramatic repricing across the tech sector and beyond, reversing weeks of bearish sentiment in a matter of hours. The rally was as broad as it was deep — and no stock rode the wave higher than Tesla.
Shares of Tesla jumped nearly 23%, reclaiming ground lost in recent weeks after falling over 55% from previous highs. The move marked the company’s strongest single-day performance in years and helped propel the broader tech complex, including Apple, which soared 15% despite persistent tensions with China. The so-called “Magnificent Seven” tech names collectively added over $1.5 trillion in market value in a single session, highlighting the magnitude of investor enthusiasm.
Yet, the geopolitical backdrop remains tense. While most nations saw tariffs lifted, China faced an immediate escalation to 125% after retaliating with its own increase to 84%. Despite this, traders looked past the unresolved trade war narrative, focusing instead on near-term upside and liquidity-driven momentum. The Nasdaq, which had recently entered bear market territory, bounced back with remarkable force — and with it, renewed investor appetite for risk.
Whether this marks the start of a lasting rebound or a sentiment-driven spike remains to be seen. For now, the message from markets is clear: the combination of softened trade rhetoric and political intervention was enough to spark one of the most aggressive one-day rallies in modern market history. Traders will be watching closely to see if policy clarity follows the market euphoria.