Traders at the New York Stock Exchange witnessed an impressive surge in US stocks following President Trump's announcement of a 90-day pause on tariffs. The Dow Jones index increased by nearly 3,000 points, while the Nasdaq saw a 12% jump. Trump's decision to pause tariffs for certain countries while proposing an increase in China's tariff rate to 125% sent a strong message to the markets.

After facing significant losses due to trade war-induced volatility, US stocks experienced a substantial rally, marking one of the biggest gains in years. The S&P 500 soared by up to 9%, the largest increase since 2008. The Dow surged by almost 3,000 points, and the Nasdaq saw a 12% increase, its best performance since 2001. President Trump's announcement brought relief to investors, with many optimistic about the future market direction amidst ongoing trade negotiations.

In response to concerns raised by various stakeholders regarding the impact of the trade war, Trump's decision to pause tariffs signaled a more diplomatic approach. While some countries benefited from the tariff pause, Trump's decision to raise China's tariff rate to 125% emphasized his strong stance. This move has shifted the focus to ongoing trade negotiations and potential trade deals, easing fears of a looming recession and inflation spikes, as highlighted by Mark Hamrick, a senior economic analyst at Bankrate.