04:38 PM EDT, 04/09/2025 (MT Newswires) -- US stocks closed sharply higher on Wednesday, with the major market indexes rebounding strongly after President Donald Trump said he would not levy reciprocal tariffs on other countries for 90 days because they have not retaliated by placing new duties on US goods.

The Nasdaq Composite closed 12.2% higher at 17,125.0, compared with 15,510 at the time of the announcement, while the Dow Jones Industrial Average jumped 7.9% to 40,608.5, compared with 37,748 when Trump paused the tariffs. The S&P 500 gained 9.5% to 5,456.8. All sectors posted large gains, led by technology.

Trump ignited the mid-afternoon rally after posting a 1:18 p.m. ET message on social media that he had authorized a 90-day pause on his reciprocal tariffs for countries that have not "retaliated in any way, shape, or form" against the US.

But, he also left in place the 10% base tariff on most import and raised the tariff rate for Chinese goods to 125% after its government responded by lifting tariffs on US goods to 84% from 34%.

US Treasury yields closed higher, with the 10-year rate jumping 9.9 basis points to 4.36% and the two-year rate soaring 17.6 basis points to 3.91%.

In a related move on Wednesday, Goldman Sachs (GS) economists rescinded their forecast looking for a US recession following the 90-day pause, according to Bloomberg News.

Minutes from the Federal Open Market Committee's March meeting showed nearly all its members agreed to significantly slow the pace of the Federal Reserve's balance sheet drawdown although several participants argued the Fed lacked a compelling case for that action, particularly with the economic uncertainty resulting from Trump's new tariff regime.

Official data are expected to show Thursday that US consumer inflation rose 0.1% sequentially and 2.5% annually in March, according to a Bloomberg-compiled consensus.

In other economic news, mortgage applications in the US soared to their highest level since September 2024 last week as heightened economic uncertainty pushed interest rates lower, the Mortgage Bankers Association said.

In company news, Delta Air Lines ( DAL ) posted better-than-expected Q1 earnings, but the carrier chose not to reaffirm its full-year outlook, citing an uncertain macroeconomic environment. Its shares rose over 23%.

Walmart ( WMT ) climbed 9.5%, recovering from a morning decline that followed CNBC reporting the retailer was pulling its outlook for Q1 operating income because of tariff uncertainties. It left in place, however, its guidance looking for Q1 sales rising 3% to 4% year over year.

West Texas Intermediate crude oil settled 4.6% higher at $62.35 per barrel intraday.

Gold was up 4.1% at $3,112.90 per troy ounce, as the dollar fell against other currencies and bond yields moved higher after the Presidential decision on tariffs. Silver also gained 3.7% to settle at $30.98 per ounce.