The New York stock market rebounded on Wednesday.
The rebound came after U.S. President Donald Trump postponed tariffs on Canadian and Mexican automobiles for one month following a phone call with Canadian Prime Minister Justin Trudeau. This move raised hopes for easing the trade war.
The decision sparked a rally in Detroit’s Big Three automakers.
Meanwhile, M7 major tech companies saw their stocks climb, except for Apple.
Markets Snap Three-Day Slide
All three major U.S. stock indices rebounded after three consecutive days of losses.
Each index gained over 1%, with the tech-heavy Nasdaq leading the charge.
The Nasdaq surged 267.57 points (1.46%) to close at 18,552.73.
The Dow Jones Industrial Average, which tracks 30 major blue-chip companies, jumped 485.60 points (1.14%), reclaiming the 43,000 mark to finish at 43,006.59.
The S&P 500, a broader measure of market situations, rose 64.48 points (1.12%), ending the day at 5,842.63.
M7 Rally, Only Apple Down
The M7 big tech stocks all rose, except for Apple.
Nvidia shares climbed $1.31 (1.13%) to $117.30, while Tesla stock surged $7.06 (2.60%) to $279.10.
Alphabet gained $2.10 (1.23%), closing at $173.02, and Microsoft soared $12.41 (3.19%) to $401.02.
Meta Platforms jumped $16.47 (2.57%) to $656.47, and Amazon rose $4.56 (2.24%) to $208.36.
Apple fluctuated throughout the day but ended slightly lower, dipping $0.19 (0.08%) to $235.74.
Detroit’s Big Three Surge
The Detroit Big Three automakers, poised to benefit most from Trump’s tariff delay, saw their stocks soar.
These companies form a massive automotive industry cluster in North America, covering the U.S., Mexico, and Canada. This makes them most vulnerable to Trump’s tariffs on Canada and Mexico. The delay provided them with a reprieve.
White House Press Secretary Karoline Leavitt confirmed Trump’s decision to postpone the auto tariffs for one month.
With the 25% tariff pushed back, shares of Detroit’s Big Three automakers skyrocketed.
Stellantis, a joint venture between Italy, the U.S., and France, saw the biggest increase, jumping $1.09 (9.24%) to $12.89.
General Motors also surged by $3.26 (7.21%) to $48.48.
Ford, which has the least exposure to Canada and Mexico among the Big Three, saw its stock climb $0.53 (5.81%) to $9.65.
