The stock market mounted one of its biggest rallies in history after President Donald Trump announced a pause in some of his "reciprocal" tariffs on the globe, causing a market that has been under extreme pressure for the past week to explode higher.

The S&P 500 skyrocketed 9.52% to settle at 5,456.90 for its biggest one-day gain since 2008. For the broad market index, it was the third-biggest gain in post-WWII history. The Dow Jones Industrial Average advanced 2,962.86 points, or 7.87%, to close at 40,608.45 for its biggest percentage advance since March 2020. The Nasdaq Composite jumped 12.16% to end at 17,124.97, notching its largest one-day jump since January 2001 and second-best day ever.

About 30 billion shares traded hands, making it the heaviest volume day on Wall Street in history, according to records that go back 18 years.

"I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately," Trump posted on his Truth Social. Trump, in the same post, said he was raising the tariff on China higher again to 125%.

Treasury Secretary Scott Bessent later clarified that all countries except China would return to the 10% baseline tariff rate, down from the higher rates that previously shocked the markets, as negotiations take place. The pause would not apply to sector tariffs, Bessent said.

Stocks that were heavily pressured by the trade war tensions led the comeback Wednesday afternoon. Apple and Nvidia soared more than 15% and nearly 19%, respectively. Walmart shares rallied 9.6%. Tesla shares climbed more than 22% on the back of the pause announcement.

"Given how depressed stock prices and sentiment had become, the 90-day pause is sparking a violent rebound, and delaying implementation certainly removes a giant overhang from the market," said Adam Crisafulli, founder of Vital Knowledge. "But — tariffs are not going away. China's tariff rate is now in triple digit territory, and who knows what happens in 90 days when this pause concludes."

Prior to the announcement of the 90-day pause, investors were on edge over an escalating tit-for-tat between China and Trump. The European Union had also approved its first set of tariffs on the U.S. set to start April 15.

Nonetheless, stocks were trending higher into the afternoon. Traders were encouraged after Bessent stated he would be taking a lead negotiating role in tariff talks. President Trump also urged investors that now was "a great time to buy" shortly after the market open in a post on Truth Social.

Trump's pause declaration went out at 1:18 p.m. ET when the Dow was about 350 points higher for the day. Seconds later, the 30-stock index surged more than 2,000 points.

In a press conference later in the afternoon, Trump said investors' fears had gone overboard.

"I thought that people were jumping a little bit out of line. They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid," said Trump.

Anxiety around the rollout of the tariffs fueled a four-day rout for stocks. Over the course of the previous four trading sessions, the Dow lost more than 4,500 points, while the S&P 500 sustained a 12% fall. The Nasdaq Composite was down more than 13% during that period. These were losses not seen since the Covid-19 pandemic.

"This allows for at least a near-term rally, but I would not assume that the bottom has been put in place," added Sam Stovall, chief investment strategist at CFRA Research. "Fool me once shame on you; fool me five times, shame on me."