The Nasdaq Composite rallied by a double-digit percentage on Wednesday, while the S&P 500 rebounded after President Donald Trump paused certain tariffs for non-retaliating countries.

The tech-heavy Nasdaq jumped 12% to 17,125. The S&P 500 rallied 9.5% to 5,456.9, while the Dow Jones Industrial Average climbed 7.9% to 40,608.5, both snapping a four-day losing streak. All sectors closed higher, led by technology's 14% jump.

In a Wednesday social media post, Trump announced a 90-day pause on the full effect of his new tariffs for countries that have not retaliated against the US. A lower tariff rate of 10% would be applicable during the period.

Nvidia (NVDA) shares jumped 19%, the top gainer on the Dow, while Apple (AAPL) increased 15%. Tesla (TSLA) shares soared 23%, while Meta Platforms (META) and Amazon.com (AMZN) surged 15% and 12%, respectively. Other mega-cap tech stocks Microsoft (MSFT) and Alphabet (GOOG, GOOGL) also saw sizable gains.

"This was the news we and everyone on (Wall) Street was waiting for," Wedbush Securities said in a note to clients. "Now we would expect massive negotiations across the board over the coming months, including China being front and center as the biggest wild card."

In the same social media post, Trump said he increased tariffs on China to 125%, effective immediately. Earlier, Beijing increased tariffs on imports from the US to 84% from 34%, effective Thursday, after Trump boosted duties on the Asian country to above 100% in total.

US Treasury yields moved up Wednesday, with the two-year rate jumping 19 basis points to 3.93% and the 10-year rate rising 8.3 basis points to 4.34%.

Federal Reserve officials indicated last month that tariffs were likely to increase inflation this year, while heightened macro uncertainty called for a "cautious approach," minutes from the central bank's March 18-19 meeting showed Wednesday.

At the meeting, the Federal Open Market Committee left interest rates unchanged for a second straight time. Policymakers kept their policy outlook intact through 2027, while downgrading their economic projections.

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 elevated uncertainty pushed interest rates lower, the Mortgage Bankers Association said.

West Texas Intermediate crude oil increased 4.9% to $62.51 a barrel Wednesday.

Delta Air Lines (DAL) posted better-than-expected first-quarter earnings, but the carrier opted not to reaffirm its full-year outlook due to an uncertain macroeconomic environment. Its shares jumped 23%, among the best performers on the S&P 500.

Gold rose 4% to $3,108.90 per troy ounce, while silver gained 4.3% to $30.97 per ounce.