Trump's Sudden Trade War Pause Shakes Markets

In a dramatic turn of events, President Donald Trump announced a 90-day halt on sweeping tariffs, sending shockwaves through global markets. The unexpected reversal, which took effect just after midnight on Wednesday, came amidst escalating market volatility.

The immediate impact was monumental: the stock market erupted, with the S&P 500 recording its largest one-day gain since 2008, soaring 9%. The Dow Jones Industrial Average jumped nearly 3,000 points, while the Nasdaq surged a staggering 12%.

Cheers and Jeers: Who Came Out on Top?

While the news brought relief to some sectors, the repercussions were mixed, especially for China, which faced even harsher tariffs.

Winners of the Tariff Reversal

Airlines and Travel Companies Thrived

The travel industry celebrated substantial gains. United Airlines saw a 26% rise in stock price, while Delta Air Lines climbed 23%. Cruise line stocks were equally buoyant, with Norwegian Cruise Line Holdings up 19% and Carnival Corporation jumping 18%. Amir Eylon, CEO of Longwoods International, noted that increased supplier costs and fears of rising prices had burdened travel companies prior to the tariff pause.

Tech Titans: Semiconductor Stocks Surge

Tech giants like Intel and Nvidia reaped the benefits as their stocks soared by around 18%. Analysts had expressed concerns that tariffs on components could negatively impact these companies, but the pause has provided a much-needed reprieve. Bernstein analysts hinted at potential complexities with supply chains but acknowledged the positive market reactions.

Elon Musk's Windfall

Tesla, facing challenges recently, saw a stock increase of 22%. CEO Elon Musk not only benefited from this surge but also watched his net worth climb to a whopping $326 billion. Musk had publicly criticized the tariffs, and the pause evidently aligned with his hopes.

Losers of the Tariff Paus