Wall Street exploded higher Wednesday after the United States and China announced a 90-day pause on reciprocal tariffs, slashing the US levy on Chinese goods from 145% to 30% and prompting a broad relief rally across every major index. The S&P 500 climbed 2.1% to close at 5,842, while the tech-heavy Nasdaq led the charge with a 2.6% gain, its best single-day performance in months.
The deal — struck after weekend talks in Geneva — removed the most acute pressure point that had rattled markets since early April. With trade war fears temporarily in the rearview mirror, investors piled back into the sectors that had been hit hardest: semiconductors, consumer discretionary, and industrials. The VIX dropped sharply to 18.4, signaling a meaningful reduction in near-term anxiety.
Nvidia was the standout winner of the day, surging 6.2% as traders bet that a calmer trade environment reopens the door for AI hardware exports to Asia. Meanwhile, mega-caps like Apple, Amazon, and Meta all posted gains between 2% and 4%, adding hundreds of billions in combined market cap in a single session.
Not everything celebrated. Defensive stalwarts like Johnson & Johnson and other bond-proxy names fell modestly as money moved away from safety trades. Oil ticked up to $72.80 on improved global demand expectations, and gold held near all-time highs at $3,185 — suggesting investors aren't completely abandoning caution just yet.