Nasdaq 100 Set For Strongest Rally Since 2008 As Magnificent 7 Add $1.5 Trillion In Historic Surge

Wall Street staged one of its most powerful rallies in history on Wednesday, as a dramatic shift in U.S. trade policy ignited an aggressive risk-on surge across every corner of the market.

At the heart of the rally was President Donald Trump's unexpected announcement of a 90-day tariff pause for countries that have not retaliated against the U.S., coupled with a renewed hardline stance on China.

The twin messaging—conciliatory toward allies, confrontational toward Beijing—was seen by investors as a calculated move to reset trade negotiations and de-escalate uncertainty.

Trump decided to impose universal 10% tariffs on countries that have not retaliated against U.S. duties, announcing a three-month window for fine-tuning negotiations. He also opted to keep duties on China as high as 125%.

The reaction was immediate and overwhelming.

The Nasdaq 100 – as tracked by the Invesco QQQ Trust QQQ – soared 11% by 2:40 p.m. ET, on track for its strongest one-day gain since October 2008, during the height of the global financial crisis.

The S&P 500 jumped 8.7%, its best session since March 2020, while the Dow Jones Industrial Average surged 7.3%, also notching a post-COVID record.

Meanwhile, the Russell 2000, which tracks domestic-focused small caps, rocketed 9.1%, nearing one of its best sessions since the index’s inception in 1987.

Mega-Cap Stocks Skyrocket

The Magnificent Seven stocks added a combined $1.44 trillion in market capitalization in a single session, in what is shaping up to be one of the largest single-day gains in aggregate market value ever recorded for the U.S. tech titans.

NVIDIA Corp. NVDA jumped 15.88%, adding $373.12 billion in market capitalization.
Apple Inc. AAPL rallied 11.72%, gaining $258.23 billion.
Microsoft Corp. MSFT rose 8.17%, up $215.33 billion.
Amazon.com Inc. AMZN climbed 9.64%, increasing its market value by $174.34 billion
Meta Platforms Inc. META advanced 10.05%, adding $152.22 billion.
Alphabet Inc. GOOG surged 7.82%, with a $138.74 billion boost.
Tesla Inc. TSLA soared 18.60%, gaining $132.73 billion.

The Roundhill Magnificent Seven ETF MAGS soared 11%, its largest one-day jump since the fund’s inception in 2023.

"This was brilliantly executed by Donald Trump. Textbook, Art of the Deal," hedge fund titan Bill Ackman posted on X, reflecting the enthusiastic reactions from investors.

Economist Mohamed El-Erian noted that while speculation centered on who might have pressured the White House—Congress, CEOs, or courts—it was likely the government bond market that forced the administration's hand: "How close it gets to the line that separates wild price volatility from market malfunctioning," he wrote.

Before Trump's announcement, U.S. Treasuries had come under heavy pressure, with yields climbing amid growing investor skepticism toward American assets.

Market experts saw the move as a potential inflection point.

"Markets are breathing a loud sigh of relief after President Trump announced a 90-day pause on tariffs and a reduction of certain ones," said Chris Brigati, CIO at SWBC. "The market’s move upward is violent, and speaks to how badly the market was looking for clarity."

Gina Bolvin, president of Bolvin Wealth Management, called this "the pivotal moment we've been waiting for," adding that the timing, just ahead of earnings season, may give companies a steadier backdrop for forward guidance.

Still, some warned the euphoria may prove temporary. "Uncertainty looms over what happens after the 90-day period," Bolvin said. "This underscores the importance of staying fully invested, particularly in a market as reactive and headline-driven as this one."

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