President Trump paused the sweeping reciprocal tariffs the U.S. imposed this week, saying dozens of countries had reached out to negotiate new trade deals.
Why it matters: It's the relief global markets, U.S. allies and many Trump advisers wanted, as fears of a global crisis mounted. But Trump didn't back off fully, keeping 10% baseline tariffs in place while increasing tariffs on China to 125%.
Axios reports U.S. stocks promptly kicked off a ferocious rally, with the S&P 500 rising 7% in a matter of minutes. Gold, oil and cryptocurrencies surged as well, as investors quickly re-embraced risk.
Media stocks experienced a dramatic surge Wednesday, coinciding with a significant rally in the broader U.S. stock market, as the Dow Jones Industrial Average soared by over 2,700 points.
The tariff pause provided immediate relief to investors, who had been grappling with fears of a deepening global trade war and its potential to push the U.S. and other economies into recession.
The broader context of this event reflects a rollercoaster week for financial markets. Just days earlier, on April 4, the Dow had plummeted 2,231 points—part of a two-day loss exceeding 4,000 points—as China’s tariff response intensified recession worries. The S&P 500 had shed over 10% across those two days, erasing $5.06 trillion in market value. Trump’s tariff policy, initiated on April 2 with sweeping levies on nearly all U.S. trading partners, had initially sent markets into a tailspin, with the Nasdaq entering bear market territory (down over 20% from its February peak) and the Dow flirting with a correction.
Financial data Wednesday supports the scale of the recovery. Comcast (CMCSA), the parent company of NBCUniversal, saw its stock price rise to $35.18, up from a previous close of $32.84, reflecting a strong single-day gain. Fox Corporation (FOX) climbed to $47.71 from $43.81, and News Corporation (NWSA), which owns Dow Jones and other media assets, reached $26.18 from $23.97.
This remarkable upswing was triggered by an announcement from President Donald Trump, who revealed a 90-day pause on most of his recently imposed "reciprocal" tariffs, with the exception of those targeting China. The decision, shared via Truth Social, came after a tumultuous period of market volatility sparked by escalating trade tensions, particularly following China’s retaliatory 34% tariff on U.S. goods implemented earlier that week.
The tariff pause provided immediate relief to investors, who had been grappling with fears of a deepening global trade war and its potential to push the U.S. and other economies into recession.
Media and tech stocks, which had suffered significant losses in prior sessions, led the charge in the rebound. Companies like Warner Bros. Discovery saw their shares jump 15%, while Disney rose 10%, Paramount gained 9%, and Netflix climbed 8%. Other notable performers included Roku, up 18%, and Snap, which increased by 15%. This rally wasn’t limited to media; the S&P 500 surged 8.2%, and the Nasdaq leapt 10.4%, marking one of the strongest single-day performances in years.
The broader context of this event reflects a rollercoaster week for financial markets. Just days earlier, on April 4, the Dow had plummeted 2,231 points—part of a two-day loss exceeding 4,000 points—as China’s tariff response intensified recession worries. The S&P 500 had shed over 10% across those two days, erasing $5.06 trillion in market value. Trump’s tariff policy, initiated on April 2 with sweeping levies on nearly all U.S. trading partners, had initially sent markets into a tailspin, with the Nasdaq entering bear market territory (down over 20% from its February peak) and the Dow flirting with a correction.
Financial data Wednesday supports the scale of the recovery. Comcast (CMCSA), the parent company of NBCUniversal, saw its stock price rise to $35.18, up from a previous close of $32.84, reflecting a strong single-day gain. Fox Corporation (FOX) climbed to $47.71 from $43.81, and News Corporation (NWSA), which owns Dow Jones and other media assets, reached $26.18 from $23.97.
The pause on tariffs, excluding China, was interpreted as a signal that Trump might be softening his stance—albeit selectively—offering a reprieve to industries reliant on global supply chains, including media and entertainment.
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