The Wall Street’s “fear gauge”—plunged from 50 to 35, reflecting reduced investor anxiety and a shift toward optimism in the market.
US Stocks Surge After Trump’s 90-Day Tariff Pause, Latest News: Wall Street posted major gains early Thursday following President Donald Trump’s announcement of a 90-day pause on tariffs, bringing relief amid a global market meltdown.
The U.S. stock indexes recorded their biggest one-day gains in years. According to a Bloomberg report, the S&P 500 rose by 9.5%, the Nasdaq 100 surged 12%, and the Dow Jones Industrial Average climbed 7.9%. About 30 billion shares were traded that day.
The Standard & Poor's 500 Index reportedly saw its largest gain—nearly 11% from bottom to top—in over 15 years, surpassing even the recovery seen during the Flash Crash of May 2010, and marking the biggest intraday rebound since the 2008 global financial crisis.
The report also noted that stocks most bet against by investors—tracked by Goldman Sachs—soared 17.34%, outperforming even the S&P 500.
Last week, many traders had bet that the market would decline. But when it surged instead, they rushed to cover their short positions (buy back stocks to avoid losses), which further fueled the rally.
“We currently have aggressive covering among hedge funds and long-only buying in tech that is ramping with each leg higher in the market,” Goldman Sachs partner John Flood wrote in a note to clients following Trump’s announcement.
The sharp rise was also driven by heavy stock purchases from leveraged exchange-traded funds (ETFs).
Daniel Kirsch, head of options at Piper Sandler, explained that leveraged ETFs buying stocks boosted the rally, while traders unwinding downside hedges (removing protective bets) added further momentum.
Several major companies recorded remarkable gains, with Nvidia soaring 18.03%, Tesla rallying 22.69%, Delta Air Lines climbing 23.38%, and AMD (Advanced Micro Devices) surging 23.82%.
Meanwhile, the VIX (Volatility Index)—known as Wall Street’s “fear gauge”—plunged from 50 to 35, reflecting reduced investor anxiety and a shift toward optimism in the market.
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