A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell on Tuesday. Stocks were modestly higher on Wednesday, although investors remained on edge after four days of heavy losses.

A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell on Tuesday. Stocks were modestly higher on Wednesday, although investors remained on edge after four days of heavy losses. / AFP

U.S. stocks surged on Wednesday after President Trump said he was pausing most tariffs for 90 days, except for those on Chinese goods.

The Dow Jones Industrial Average soared over 2,600 points, or nearly 7% as relief spread across investors. The S&P surged more than 8%, while the Nasdaq rallied more than 10% as of mid-afternoon trading.

The sharp rebound comes after days of big losses in global markets sparked by Trump's announcement last week that he would impose reciprocal tariffs on countries, as well as a universal 10% tariff.

But Trump backed down from many of his actions, announcing a 90-day pause on those reciprocal tariffs except for China. The president said he would raise tariffs on China to 125% after the Asian economy had earlier in the day announced a 84% retaliatory tariff on the U.S.

The president added he would continue to impose a 10% tariff on all other countries.

Despite the rally on Wednesday, confusion remains about the state of other tariffs Trump has announced, including his tariffs on steel and aluminum imports.

Tags: Stock market  Tariffs