U.S. stocks surged on Wednesday, bouncing back from two days of steep losses as investors responded positively to tariff developments and fresh economic data.
The Dow Jones Industrial Average and S&P 500 each climbed 1.1%, while the Nasdaq Composite jumped 1.5%. The rally followed a sluggish start to the session and came amid concerns over the potential impact of new tariffs on the economy and corporate profits.
Automaker stocks saw significant gains as the White House announced a one-month delay on tariffs targeting the auto industry. Shares of General Motors (GM) and Ford Motor (F) soared by about 7% and 6%, respectively. Stellantis (STLA), the maker of Jeep and Chrysler, surged 9%, while Toyota Motor (TM) added 6.5% to its value.
Market participants had been awaiting updates on tariffs after U.S. Commerce Secretary Howard Lutnick revealed on Fox Business that President Donald Trump had been in discussions with Mexican and Canadian officials. The White House was expected to announce an agreement with these countries, meeting them “in the middle.” On Tuesday, the U.S. imposed a 25% tariff on imports from Mexico and Canada and raised the levy on Chinese imports to 20%.
The announcement followed Trump’s speech to Congress, where he defended the tariffs as essential for job creation and revenue generation. Critics, however, warn that the trade measures could trigger inflation, disrupt global economic activity, and harm companies exposed to international markets, especially if retaliatory measures follow.
In the tech sector, major stocks were mostly in the green, with Microsoft (MSFT) leading the way with a 3% rise. Broadcom (AVGO), set to release quarterly results after the market close on Thursday, climbed 2%. Nvidia (NVDA), Amazon (AMZN), Alphabet (GOOG), Meta Platforms (META), and Tesla (TSLA) also saw gains, although Apple (AAPL) edged slightly lower.
Cybersecurity firm CrowdStrike (CRWD) was among the day’s biggest decliners, dropping more than 6%. The stock’s decline followed the release of guidance that fell short of analysts’ expectations, despite strong quarterly results.
In the cryptocurrency market, shares of MicroStrategy (MSTR), the largest corporate holder of Bitcoin, surged 12% as Bitcoin rose in value. Cryptocurrency exchange Coinbase Global (COIN) and Bitcoin miner Marathon Digital (MARA) also saw gains of 5% and 8%, respectively. Bitcoin was trading at $90,100, up from an overnight low of $86,300.
Economic data released earlier in the day painted a mixed picture. ADP’s private sector payroll report showed weaker-than-expected growth, while services sector activity and factory orders came in stronger than anticipated. Investors are now awaiting the February jobs report from the Labor Department, due on Friday.
The yield on 10-year U.S. Treasury bonds rose to 4.28% from 4.21%, after hitting its lowest point since October on Tuesday due to growing economic concerns.
In commodities, gold futures climbed 0.3% to $2,930 an ounce. However, oil prices fell sharply, with West Texas Intermediate (WTI) crude dropping 2.7% to $66.40 per barrel, its lowest level since late 2021.
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