Market Surge: S&P 500 Soars Amid Tariff Truce and Investor Optimism

The S&P 500 surged 9.5% after President Trump announced a 90-day tariff pause, temporarily easing investor concerns about U.S. trade policies. While tariffs on China increased, a broader suspension provided relief to markets. Analysts warned of continued uncertainty, as U.S. economic outlook remains volatile.

The S&P 500 experienced a significant gain of 9.5% on Wednesday, following U.S. President Donald Trump's declaration of a 90-day pause on tariffs for multiple countries. This temporary relief provided comfort to investors, who were increasingly concerned about the global economic repercussions of U.S. trade strategies.

Trump's decision to increase tariffs on Chinese imports to 125% came as a response to China's announced levy of 84% on U.S. goods. The news created an atmosphere of uncertainty for investors, leading them to seek out undervalued stocks after a recent market downturn.

The announcement caused financial analysts to reassess economic forecasts, with firms like Goldman Sachs retracting their recession predictions. Nevertheless, experts emphasized the difficulty businesses face in planning due to the unpredictable nature of tariff policy changes.

(With inputs from agencies.)