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Trump sets 90-day tariff pause but raises China levy to

125%

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Indexes up: Dow 7.27%, S&P 500 8.51%, Nasdaq 10.77%

(Updates prices to late afternoon)

By Sinéad Carew and Shashwat Chauhan

April 9 (Reuters) - Wall Street's main indexes soared on

Wednesday, with the S&P 500 up more than 8%, after U.S.

President Donald Trump declared a 90-day tariff pause for many

countries, effective immediately, bringing relief to investors

worried about the global economic impact of U.S. trade policies.

Trump declared the pause on a set of broad tariffs, while

raising duties to 125% for China.

China had imposed a levy of 84% on all U.S. goods starting

April 10, up from the 34% previously announced, after U.S.

levies of 104% on Chinese goods went into effect.

While Trump's announcement still left investors with

uncertainty about the ultimate tariff policy, traders went

shopping for beaten-down stocks. Since Trump announced broad

tariffs late on April 2, stocks had fallen more than 12%, for

their biggest four-day selloff in five years.

"Markets had been looking for a reason to rally for a few

days. Markets can only sustain extreme conditions for so long

before exhaustion sets in, rather like a toddler and a tantrum,"

said Carol Schleif, chief market strategist at BMO Private

Wealth in Minneapolis.

"The 90-day suspension does allow nice breathing room to

allow negotiation to settle in and market valuations have

clearly been reset. Yet the uncertainty for companies remains."

At 2:32 p.m. (1832 GMT) the Dow Jones Industrial Average

rose 2,736.95 points, or 7.27%, to 40,382.54, the S&P 500

gained 424.20 points, or 8.51%, to 5,406.97 and the

Nasdaq Composite gained 1,650.52 points, or 10.77%, to

16,912.34.

All 11 of the S&P 500's major industry indexes were higher

after the news, with technology up 11.85%. Utilities

was the slowest gainer, up 2.69%.

Large technology stocks provided the biggest boost, with

Nvidia ( NVDA ) up 15% and Apple ( AAPL ) rising more than 9%.

"The reflex to buy the dip is very strong and certainly the

wipeout you've seen in tech stocks makes them cheap relative to

where they were," said Chris Beauchamp, chief strategist at IG.

The U.S. Treasury's $39-billion 10-year note

auction came in within market expectations, priced at a high

yield of 4.435%, lower than the rate forecast at the bid

deadline, suggesting solid investor demand.

The yield on the 10-year note was last at 4.39% amid a

selloff in the bond market, where tariff-driven turmoil prompted

investors to dump safe-haven U.S. Treasuries in a dash for cash,

pushing yields higher.

The upcoming earnings season will offer more insights into

the health of corporate America as investors fear a hit to

economic growth from the tariffs. U.S. banks, including JPMorgan

Chase ( JPM ), will report first-quarter results on Friday.

The CBOE Volatility index - seen as Wall Street's

"fear gauge" - hit a low of 34.54 points after the tariff pause,

compared with its high of 57.96 for the session so far.

While the market was rallying on the tariff pause, minutes

from the Federal Reserve's meeting last month were released.

Fed policymakers were nearly unanimous that the U.S. economy

faced risks of simultaneously higher inflation and slower

growth, with some policymakers noting that "difficult tradeoffs"

could lie ahead for the central bank.

A consumer price inflation report is set for Thursday, which

could offer clues on the inflation trajectory.

Delta Air Lines ( DAL ) shares were up 23.94% after the

carrier beat first-quarter profit expectations. The company,

though, pulled its 2025 financial forecast and projected

current-quarter profit below expectations.

Advancing issues outnumbered decliners by a 4.56-to-1 ratio

on the NYSE where there were 26 new highs and 1,154 new lows.

On the Nasdaq, 3,672 stocks rose and 763 fell as advancing

issues outnumbered decliners by a 4.81-to-1 ratio.

The S&P 500 posted one new 52-week high and 100 new lows

while the Nasdaq Composite recorded 11 new highs and 642 new

lows.