Euphoric Wall Street Soars Amid Temporary Tariff Relief

US stocks experienced a historic surge as President Trump announced a temporary pause on most tariffs. The S&P 500 and other indices saw significant gains, spurred by investor relief. However, tension remains with China as it increases its tariffs, signaling ongoing instability in global markets.

In an extraordinary day on Wall Street, US stocks soared after President Donald Trump announced a temporary pause on most of his tariffs. This unexpected move brought a wave of relief among investors, driving the S&P 500 up by 9.5%, a gain typically seen over an entire year.

The announcement came amid concerns of a looming recession fueled by the ongoing trade war, sparking a rally with the Dow Jones Industrial Average and Nasdaq composite also posting significant gains. However, Trump's decision to raise tariffs on Chinese products to 125% suggests the trade battle between the world's two largest economies is far from over.

This historic rally highlights the volatility of current financial markets, with analysts cautioning against reading too much into short-term gains. Despite this temporary reprieve, traders remain on edge, wary of the potential for further market swings as tensions with China escalate and affect global economic stability.

(With inputs from agencies.)