The US stock market shot up after President Donald Trump announced a 90-day pause on tariffs but escalated the fight with China. The Dow Jones Industrial Average jumped by over 2,000 points.
As of 1:42 pm EST, the S&P 500 was at 5,290.01, up over 307.24, marking a 6% jump. The Nasdaq, as of 1:44 pm EST, was at 16,429.30, posting gains of over 1,161.39 points. The tech-heavy gauge was up over 7.61%.
Earlier during the trade, the S&P 500 reclaimed the 5,000-mark after initially opening lower.
All eleven sectoral indices in the S&P 500 basket rose, with information technology stocks adding 10%, followed by a 9% gain in consumer discretionary, and an 8% jump in telecom and industrials.
Meanwhile, the US Dollar index marginally rose to 102.95, appreciating against the yen, the euro and the Swiss Franc.
Bonds took a beating, with the yield on the benchmark 10-year Treasury rising nine basis points to 4.38%.
Commodities surged, with the international benchmark Brent crude rising 5% to edge over $65 per barrel. Spot gold prices zoomed nearly 3%, reaching $3,069.4 per troy ounce.
Bitcoin was up 6.61% at $82,149.38, according to Bloomberg.
Earlier in the day, China and the European Union announced retaliatory tariffs on American goods, adding fuel to the global trade war.
China announced it will impose an 84% tariff on US goods starting Thursday in response to Trump's 104% duty on Chinese imports. The EU also approved its first set of tariffs on the US, set to start on April 15.
The worsening trade conflict has prompted economists at JPMorgan Chase and Goldman Sachs to raise the probability of a US recession.
Trump also said his policies will "work out well" and implied that battered US equities make it a "great time to buy".
In a post on Truth Social, he said, "BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before! THIS IS A GREAT TIME TO BUY!!!"
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
