new york
CNN
–
U.S. stocks rose on Wednesday after a sharp decline over two days. The rally comes after the Trump administration announced a month's reservoir on car tariffs in Canada and Mexico, easing investors' concerns about the world trade war.
U.S. stocks that were wobbling during the day surged high after the White House confirmed a month's exemption. The Dow jumped 615 points before returning slightly to close 486 points (1.14%) at 43,007. The wider S&P 500 rose 1.12%, while Nasdaq composites rose 1.46%.
“We spoke with three big car dealers. President Donald Trump said in a statement read by White House Press Secretary Caroline Leavitt at a press conference on Wednesday. Those dealers included Stellantis, Ford and General Motors.
General Motors (GM) shares rose 7.21%. Stellantis (STLA) shares rose 9.24%, while Ford (F) shares rose 5.81%.
Announcing a month's tolerance for tariffs on automakers is welcome news for investors looking for signs that the Trump administration may negotiate or roll back its tariff policies.
After an afternoon rally has had to be hit to start the week, it rebounds in the stock market. The Dow fell a whopping 1,300 points on Monday and Tuesday, mainly due to Trump's tariff enactment and subsequent retaliation from trading partners. The wider S&P 500 on Tuesday wiped out profits since Trump's reelection in November.
In his speech to Congress on Tuesday, Trump did not mention the stock market. The stock market is the barometer of the economy that is normally touted as evidence of success as president. But Trump said tariffs could cause “small stumbling” to the economy.
Experts point to an increasing uncertainty among investors.
“As Canada, Mexico and China are currently retaliating, trade tensions are rising, increasing inflation risks and market volatility,” Solita Marceli, chief investment officer for the Americas at UBS Global Wealth Management, said in a memo on Wednesday.
Wednesday's market rebound will recoup some of this week's previous losses, but the S&P 500 is still away from previous record highs that reached two weeks ago.
Crude oil prices fell on Wednesday due to concerns over the brewing trade war and oversupport in the OPEC+ market. US benchmark WTI crude futures fell 2.7% to $66.40, the lowest price since September 2024.
At some point during the day, crude fell to $65.22, the lowest mid-day price since March 2023.
Kevin Gordon, a senior investment strategist at Charles Schwab, said the round-trip with tariffs created a fog of uncertainty for investors, businesses and consumers.
“The uncertainty at this point is policy,” Gordon said.
