U.S. stocks staged a dramatic comeback on Wednesday, with the S&P 500 recording its biggest one-day gain since the 2008 financial crisis, after President Donald Trump announced a 90-day pause on sweeping tariffs for many countries. The Nasdaq surged 12.16%, its second-biggest daily jump ever, while the Dow climbed nearly 8%.

Temporary Relief, Lingering Uncertainty

The market rally came after days of steep losses triggered by Trump’s earlier tariff announcements. Investors welcomed the pause, even as Trump raised tariffs on Chinese imports to 125% in response to China’s own retaliatory duties. The move injected fresh uncertainty into long-term trade dynamics but offered short-term clarity that traders seized on.

“This is the pivotal moment we’ve been waiting for,” said Gina Bolvin, noting a temporary sense of direction. However, analysts warned of more volatility ahead once the 90-day window closes.

All Sectors Rebound, Tech and Autos Lead

Every major sector in the S&P 500 rose, led by technology and auto stocks. Nvidia soared nearly 19%, Apple gained over 15%, and the S&P Auto Index leapt almost 21%—its biggest daily jump on record. A robust $39 billion Treasury auction also calmed nerves, suggesting sustained investor appetite despite policy turbulence.

Even with Wednesday’s gains, markets remained below pre-tariff announcement levels from April 2.

Volatility Persists Ahead of Key Data

Wall Street’s fear index, the VIX, plunged from an earlier high of 57.96 to close at 33.62. But upcoming inflation data and earnings season could shape the next market direction, especially with the Federal Reserve signaling challenging trade-offs between inflation and growth.

First-quarter earnings from JPMorgan Chase and others are expected Friday, with investors watching for signs of economic resilience or deeper strain.