By Heard Editors
What Happened in Markets Wednesday
Stocks rebounded after their Tuesday plunge. The S&P 500 index recovered a good chunk of its prior-day swoon, which came in reaction to the start of a new round of tariffs. On Wednesday the broad-market index gained 1.1%, and the Nasdaq Composite rallied 1.5%. The Dow Jones Industrial Average added back 485 points.
There was fresh hope for tariff relief. Despite President Trump's unapologetic embrace of tariffs in his Tuesday speech to Congress, markets could grasp at glimmers of a speedy resolution. Commerce Secretary Howard Lutnick said the U.S. might "work something out" with Canada and Mexico.
Automaker shares jumped on a reprieve. The White House announced a one-month tariff exemption for automakers for cars that comply with a prior trade pact between the U.S., Canada and Mexico. Ford Motor, General Motors and Chrysler-owner Stellantis jumped about 6%, 7% and 9%, respectively. The White House said the president was "open" to other exemptions as well.
There was optimism for the housing market. A weekly measure of mortgage-loan applications jumped 20% week-over-week in response to a dip in borrowing rates. That boosted shares of lenders such as Rocket Cos., which surged 11%.
Oil prices dropped to six-month lows. Benchmark U.S. crude prices are now around $66 a barrel, down from about $80 in January. Prices are under pressure from OPEC's plan to boost production, but also economic slowdown fears.
China set an ambitious growth target. The nation's leadership set a 5% target for 2025 economic expansion, despite looming challenges including trade wars and a prolonged property downturn. Hong Kong's Hang Seng index, which features some big Chinese tech stocks, jumped 2.8%.
This analysis comes from the Journal's Heard on the Street team. Subscribe to their free daily afternoon newsletter here.
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(END) Dow Jones Newswires
March 05, 2025 16:49 ET (21:49 GMT)
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