Stocks rose on Wednesday, staging a recovery rally after back-to-back losses as investors hoped that an exemption for automakers to President Donald Trump's controversial tariffs opened the floodgates for more concessions.

The Dow Jones Industrial Average rebounded by 485.60 points, or 1.14%, regaining ground after plunging more than 1,300 points over the last two sessions. The S&P 500 and Nasdaq Composite added 1.11% and 1.46%, respectively. All three indexes were on track to snap two-day losing streaks.

Stocks took a leg up after the White House said it granted a one-month delay for tariffs on automakers whose cars comply with the United States-Mexico-Canada Agreement. Stellantis surged 10%, while Ford and General Motors added more than 5% and 8%, respectively.

White House Press Secretary Karoline Leavitt also said Trump was open to providing additional exemptions on the taxes.

Traders see that "the administration is going to respond to market pressure," said Ross Mayfield, investment strategy analyst at Baird, adding that the White House will "scramble" to adjust policy as needed. "This is further confirmation for investors who feel that way."

A broad rally ensued in afternoon trading following the announcement. About four out of five S&P 500 members tracked for gains, while the small cap-focused Russell 2000 advanced about 1%. Tech stocks such and Microsoft and Tesla also popped in the session, a turn after the sector has led the market's recent drawdown.

Still, uncertainty lingered as Trump said Canada's fentanyl efforts were "not good enough" in a call with Canadian Prime Minister Justin Trudeau. The three indexes swung between positive and negative territory Wednesday before the announcement of delays for automakers, underscoring the heightened market volatility as investors tracked the status of tariff policy.

Trump's levies — and subsequent announcements of retaliatory plans from China, Mexico and Canada — have rocked markets this week. Even with Wednesday's respite, the three major indexes are still all down more than 1% on the week.