Wall Street erupted in a historic rally late Wednesday after President Donald Trump announced a 90-day pause on most “reciprocal” tariffs, excluding China, sparking the S&P 500’s largest single-day gain since 2008. The Dow Jones Industrial Average rocketed 2,962.86 points, or 7.87%, closing at 40,608.45—its best day since March 2020. The S&P 500 surged 9.52% to 5,456.90, a level last seen before its recent 17.4% drop from a February 19 peak, while the Nasdaq Composite soared 12.16% to 17,124.97, its second-best day ever.

Trump’s Truth Social post, hiking China’s tariffs to 125% but slashing others to 10%, reversed a week of market carnage. The SPY, tracking the S&P 500, hit $544.164, up sharply from $496.48 the previous day, reflecting the day’s 9.5% spike after a volatile session—opening at $493.44, dipping to $485.622, and peaking at $544.814. Trading volume hit a record 30 billion shares, the heaviest in 18 years.

The pause, a stark pivot from Trump’s earlier tariff blitz on 86 countries, including a 104% levy on China, eased fears of a global recession. Goldman Sachs had raised U.S. recession odds to 45% from 20% amid prior tariff escalations, which saw the S&P 500 crater 10% over two days last week. Sectors battered by trade tensions—like cruise stocks—rebounded hard, with Carnival and Norwegian Cruise Line up 18%. Apple and Nvidia, previously hammered, gained 11% and 13%.

Yet, skepticism lingers. Trump’s China tariff hike and the temporary nature of the pause—90 days—leave markets on edge. Critics argue this rollercoaster reflects policy whiplash, not stability, with global trade still at risk. For now, Wall Street’s breathing easier, but the tariff saga’s far from over.