US stocks book largest gains since 2008 as Trump dials down tariffs

Forget last week — this Wednesday was the real Liberation Day. President Donald Trump watered down his reciprocal tariffs for 90 days on countries that haven’t issued retaliatory tariffs while upping levies on imports from China to 125%, kicking off a face-ripping rally on Wall Street.

The S&P 500 rose 9.5%, the Nasdaq 100 gained 12%, and the Russell 2000 marched 8.7% higher. It was the best day for the benchmark US stock index since October 28, 2008, and the largest gain for the tech-heavy gauge since October 13, 2008.

More than 30 billion shares changed hands across all US exchanges, a record, while 485 S&P 500 constituents rose, the most since October 4, 2022. A handful of stocks have recouped all their losses since last week’s Rose Garden tariff announcements.

The Magnificent 7 all outperformed the market, led by a 22% gain for Tesla and near 19% advance for Nvidia.

There was clear panic buying at play, too: a basket of US stocks with the biggest sales exposure to China had its second-best session on record on a day where China slapped the US with 84% tariffs and the US re-upped its duties in response.

Retail stocks ramped, as even if they still have exposure to China, they’ll get a break with the drops on tariffs for the likes of Vietnam and others in the region.

Airlines went skyward, with Delta, United, and American rising more than 20%, even as Delta withdrew its guidance.

Walmart performed roughly in line with the market after maintaining its full-year outlook while withdrawing its Q1 operating income guidance.

Bitcoin rose just as much as the S&P 500 on the day.