US 90-day tariff pause sets off furious rally

(Sharecast News) - The White House hit pause on its 'reciprocal tariffs' for all countries - save China - setting off a furious rally on Wall Street. On Thursday afternoon, the US President, Donald Trump, said that reciprocal tariffs would be postponed for 90 days, while negotiations took place.

However, a 10% base tariff, which had already kicked into effect, was kept in place, while levies on China were ramped up to 125%.

"There is of course, a sting in the tail. China faces higher tariffs in response as Trump continues to target his geopolitical rival," said IG chief market analyst Chris Beauchamp.

"Whether this was part of a grand plan is to be debated, but it certainly looks like the US president has made some progress in reorienting the global trading system back towards the US and away from China."

By the end of trading in New York, the S&P 500 had run up by 9.52% to 5,456.90, while the Nasdaq-100 surged 12.16% to 17,124.97.

Significantly, the VIX index, which is known to many as Wall Street's fear gauge, plummeted by 35.75% to 33.62.

Ten-year US government bond yields meanwhile fell back, as did the euro, but crude oil futures also caught a bid.