U.S. stocks skyrocketed on Wednesday after the U.S. President Donald Trump announced a pause on certain "reciprocal" tariffs, triggering a powerful rebound in a market that had been under intense pressure over the past week.

The Dow Jones Industrial Average jumped 2,962.86 points, or 7.87 percent, closing at 40,608.45. The S&P 500 surged 474.13 points, or 9.52 percent, to 5,456.90 - its largest single-day gain since 2008, while the Nasdaq Composite Index rallied 1,857.06 points, or 12.16 percent, to finish at 17,124.97. It was the Nasdaq's most significant one-day advance since January 2001 and its second-largest ever.

All 11 major sectors in the S&P 500 ended higher. Technology and consumer discretionary sectors led the way, climbing 14.15 percent and 11.36 percent, respectively. Utilities, while still strong, posted the smallest gain of the day, rising 3.91 percent.

Trading volume surged dramatically, with roughly 30 billion shares changing hands - the highest daily volume recorded on Wall Street in the history.

"I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10 percent, also effective immediately," Trump posted on his Truth Social. Trump, in the same post, said he was raising the tariff on China higher again to 125 percent.

Later in the day, U.S. Treasury Secretary Scott Bessent confirmed that the pause would apply to all countries except China. He noted that base tariff rates would revert to 10 percent during the negotiation period, although sector-specific tariffs would stay in place.

U.S. stocks that had suffered the most under the weight of trade tensions led the market's comeback. Apple soared more than 15 percent, Nvidia surged nearly 19 percent, and Tesla jumped over 22 percent. Walmart shares also saw a robust rise, gaining 9.6 percent.

"Given how depressed stock prices and sentiment had become, the 90-day pause is sparking a violent rebound, and delaying implementation certainly removes a giant overhang from the market," said Adam Crisafulli, Vital Knowledge founder. "But - tariffs are not going away. China's tariff rate is now in triple digit territory, and who knows what happens in 90 days when this pause concludes."

Still, stocks continued to trend upward into the afternoon session. Investor sentiment improved after Bessent announced he would take the lead in upcoming tariff negotiations. Adding to the optimism, Trump took to Truth Social shortly after the market opened, encouraging investors by saying it was "a great time to buy."

"This allows for at least a near-term rally, but I would not assume that the bottom has been put in place," said Sam Stovall, chief investment strategist at CFRA Research. "Fool me once shame on you; fool me five times, shame on me."