The Nasdaq Index experienced a notable increase of 12% on Wednesday, achieving its second-largest daily gain ever, attributed to the decision by President Trump to delay tariff implementations for 90 days. The stock Strategic (MSTR), having rebounded strongly and forming part of the Invesco QQQ Trust, Series 1 (QQQ) ETF, surged by 25%.
Additionally, the S&P 500 saw an advance of nearly 10%, which represented its third-largest single-day rise, only eclipsed by two specific sessions in 2008.
This surge may seem optimistic at first glance, yet it is essential to keep in mind that the biggest three rallies of the Nasdaq occurred in 2001 and 2008—both during economic downturns and followed by subsequent declines. Likewise, the two largest up days for the S&P 500 also took place during the financial crisis of 2008. Investors should exercise caution regarding bear market recoveries.
Speculation is rising over the reasons behind Trump’s tariff pause. The international bond market has faced pressure, particularly as yields began to climb. According to a report by FOX Business Senior Correspondent Charles Gasparino, this pressure could be traced to Japan’s bond sales, rather than the anticipated action from China.
As the stock market rallied, the VIX (Volatility Index) dropped to a closing value of 34, marking the llargest percentage decline in a single day in its history, overshadowing a record set in 2010.
Bitcoin (BTC) also experienced a significant spike, briefly surpassing the $82,000 mark, although it continues to remain within the downward trend it has followed since January.