Extraordinary gains on Wall Street as Trump backflips on tariffs

NEW YORK, New York - U.S. stocks roared back to life on Wednesday after U.S. President Donald Trump back flipped on his recently announced trade tariffs. After ruling out pauses, reductions or any changes every day for the past week, the president on Wednesday said he watched an interview by JP Morgan CEO Jamie Dimon earlier in the day and realised "something had to be done about the tariffs." Later advisors said it was the plan all along, and the recent days events were "all for show."

The president paused all tariffs for 90 days, except those against China, which he in creased to 125 percent. All others were restricted in the meantime to 10 percent.

Addressing reporters on the change of course Wednesday, Mr Trump said: "Well, I thought that people were jumping a little bit out of line."

"They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid, unlike these champions, because we have a big job to do," he said.

"No other president would have done what I did. No other president," Mr Trump said said. "And it had to be done."

S&P 500 (Standard & Poor's 500): The Standard and Poor's 500 index closed at 5,456.90, marking an increase of 474.13 points, or 9.52 percent. This surge reflects investor optimism in response to the temporary easing of trade tensions.

Dow Jones Industrial Average (DJIA): The Dow Jones Industrial Average soared by 2,962.86 points, closing at 40,608.45, a gain of 7.87 percent. This represents one of the most substantial single-day point increases in the index's history, driven by positive market sentiment following the tariff suspension.

NASDAQ Composite: The tech-heavy NASDAQ Composite index experienced a remarkable rise, closing at 17,124.97, up 1,857.06 points, or 12.16 percent. Technology stocks, which had been under pressure due to trade uncertainties, rebounded strongly.

The announcement of the tariff suspension provided a temporary reprieve for markets that had been volatile due to escalating trade tensions. However, the continuation of increased tariffs on Chinese goods, with rates raised to 125 percent, indicates that significant trade challenges remain.

On Wednesday, the global foreign exchange market experienced notable fluctuations, primarily influenced by escalating trade tensions between the United States and China. The U.S. dollar exhibited mixed performance against major currencies, reflecting investor reactions to the unfolding economic developments.

EUR/USD (Euro/US Dollar): The euro edged slightly lower against the U.S. dollar, closing at 1.0949, a decrease of 0.04 percent. This marginal decline occurred despite the euro benefiting from the broader market's risk-off sentiment amid trade war concerns.

USD/JPY (US Dollar/Japanese Yen): The U.S. dollar strengthened against the Japanese yen, rising by 1.15 percent to end at 147.89. This movement indicates a shift in investor preference, as the yen typically serves as a safe-haven currency during periods of market uncertainty.

USD/CAD (US Dollar/Canadian Dollar): The greenback declined against the Canadian dollar, with the pair sliding to 1.4093, down 1.19 percent. The Canadian dollar's appreciation was linked to fluctuations in commodity prices and market reactions to the trade dispute.

GBP/USD (British Pound/US Dollar): The British pound advanced against the U.S. dollar, gaining 0.43 percent to settle at 1.2819. This uptick reflects the pound's resilience amid the broader currency market movements influenced by geopolitical tensions.

USD/CHF (US Dollar/Swiss Franc): The U.S. dollar appreciated against the Swiss franc, rising to 0.8572, an increase of 1.24 percent. The Swiss franc, another traditional safe-haven currency, saw depreciation as investors adjusted their positions in response to the evolving trade situation.

AUD/USD (Australian Dollar/US Dollar): The Australian dollar experienced a significant surge, rising by 3.24 percent to reach 0.6149 against the U.S. dollar. This notable gain suggests a robust response from the Australian currency amid the global trade developments.

NZD/USD (New Zealand Dollar/US Dollar): Similarly, the New Zealand dollar strengthened by 2.06 percent, advancing to 0.5643 against the U.S. dollar. The positive movement aligns with the broader trend of commodity-linked currencies reacting to the trade news.

Shock falls on global stock markets Wednesday

On Wednesday, global stock markets experienced significant declines, with major indices across Europe, Asia, and Australia closing lower. The downturn was attributed to escalating trade tensions and newly announced tariffs by the United States, which increased tariffs on Chinese imports to 125 percent, prompting retaliatory measures from China and contributing to market instability. Canada's market however surged more than 5 percent later in the day when President Trump reversed course on his tariff policy.

S&P/TSX Composite Index (Canada): Canada's primary stock market index, the S&P/TSX Composite, increased by 1,220.13 points to close at 23,727.03, a gain of 5.42 percent. The Canadian market responded favorably to the tariff suspension, reflecting broader North American market trends.

European Markets:

FTSE 100 (UK): Closed at 7,679.48, down 231.05 points or 2.92 percent.
DAX (Germany): Ended at 19,670.88, a decrease of 609.38 points or 3.00 percent.
CAC 40 (France): Finished at 6,863.02, losing 237.40 points or 3.34 percent.
EURO STOXX 50: Declined to 4,622.14, down 151.51 points or 3.17 percent.
Euronext 100 Index: Dropped to 1,355.59, a fall of 50.07 points or 3.56 percent.
BEL 20 (Belgium): Closed at 3,862.22, down 190.05 points or 4.69 percent.

Asian Markets:

Hang Seng Index (Hong Kong): Rose to 20,264.49, gaining 136.81 points or 0.68 percent.
STI Index (Singapore): Fell to 3,393.69, down 75.78 points or 2.18 percent.
S&P/ASX 200 (Australia): Decreased to 7,375.00, losing 135.00 points or 1.80 percent.
All Ordinaries (Australia): Dropped to 7,561.70, down 142.70 points or 1.85 percent.
S&P BSE SENSEX (India): Closed at 73,847.15, decreasing by 379.93 points or 0.51 percent.
FTSE Bursa Malaysia KLCI: Ended at 1,400.59, down 42.97 points or 2.98 percent.
S&P/NZX 50 Index (New Zealand): Fell to 11,806.55, a decline of 84.89 points or 0.71 percent.
KOSPI Composite Index (South Korea): Dropped to 2,293.70, down 40.53 points or 1.74 percent.
TWSE Capitalization Weighted Stock Index (Taiwan): Closed at 17,391.76, decreasing by 1,068.19 points or 5.79 percent.
TA-125 (Israel): Fell to 2,403.99, down 40.64 points or 1.66 percent.
EGX 30 Price Return Index (Egypt): Ended at 30,079.90, losing 569.10 points or 1.86 percent.
Top 40 USD Net TRI Index (South Africa): Declined to 4,088.70, down 161.02 points or 3.79 percent.
SSE Composite Index (China): Increased to 3,186.81, gaining 41.26 points or 1.31 percent.
Nikkei 225 (Japan): Fell to 31,714.03, down 1,298.55 points or 3.93 percent.

The market volatility was largely attributed to the United States' abrupt policy shift, pausing tariffs on most nations for 90 days while increasing tariffs on Chinese imports. This move intensified the ongoing trade war between the U.S. and China, leading to global economic uncertainty and prompting investors to react cautiously.