The US markets sky rocketed on Wednesday with major averages posted their biggest one-day gains in years. The market turned jubilant after U.S. President Donald Trump announced a 90-day pause on new ‘reciprocal tariffs’ on most countries to allow for negotiations. Meanwhile, investors gave sigh of bliss after US reduced the tariffs down to a ‘universal 10 percent’ level during the 90-day pause. However, the pause will not apply to China, as Trump announced that he is raising the tariff on the country to 125 percent due to the ‘lack of respect’ they have shown to the world's markets.
On sectoral front, semiconductor stocks showed sharp up move in reaction to the latest tariff news, with the Philadelphia Semiconductor Index soaring by 18.7 percent after ending the previous session at its lowest closing level in over a year Substantial strength also emerged among airline stocks, as reflected by the 15.3 percent spike by the NYSE Arca Airline Index. Oil service stocks also moved sharply higher amid a significant rebound by the price of crude oil, driving the Philadelphia Oil Service Index up by 12.9 percent.
Dow Jones Industrial Average surged 2,962.86 points or 7.87 percent to 40,608.45, Nasdaq soared 1,857.06 or 12.16 percent to 17,124.97 and S&P 500 spiked by 474.13 points or 9.52 percent to 5,456.90.
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