Exxon Mobil (XOM) stock surged 5.08% in intraday trading on Wednesday, as energy stocks reversed course following President Trump's announcement of a 90-day pause on tariffs. The oil giant's shares, along with those of other major energy companies, rebounded sharply after an initial slump earlier in the session.

The turnaround in Exxon's stock price was primarily driven by two key factors: 1. Tariff Relief: President Trump's decision to pause tariffs for 90 days alleviated immediate concerns about the impact of trade tensions on global oil demand. This announcement prompted a broad recovery in energy stocks, with Exxon's peer Chevron also rising 5.5%. 2. Positive Q1 Outlook: Exxon recently hinted at a potential earnings boost for the first quarter of 2025, citing higher commodity prices for oil and natural gas. The company forecasted an increase in earnings of $900 million from the previous quarter, with stronger oil refining margins expected to contribute an additional $300-$700 million.

The combination of easing trade tensions and expectations of strong Q1 results has reignited investor confidence in Exxon Mobil. As one of the largest energy firms in the United States, Exxon's performance is often seen as a bellwether for the broader energy sector. The company's ability to capitalize on higher commodity prices and improved refining margins suggests a potentially robust start to the year for the oil and gas industry.

Despite the day's gains, investors will be closely watching for Exxon's official Q1 earnings report to confirm the positive outlook. Additionally, market participants will continue to monitor developments in global trade relations and their potential impact on energy demand and prices in the coming months.