U.S. stocks shot up on Thursday as President Donald Trump revealed plans for "reciprocal" tariffs, aimed at evening out trade imbalances with global partners. While the announcement hinted at a stricter trade stance, investors breathed a sigh of relief as Trump delayed the actual rollout.

The Dow Jones Industrial Average gained over 350 points, climbing 0.7%, while the S&P 500 added more than 1%, closing just a few points below its all-time high. The Nasdaq Composite, packed with tech giants, saw an even stronger boost, jumping over 1.5% as Tesla and Nvidia stocks soared.

Wall Street appeared to welcome the president’s decision to push implementation until at least April, leaving room for potential negotiations.

President Trump Pushes ‘Fair’ Trade Rules

Speaking from the Oval Office, Trump emphasizes that his administration will match the tariffs imposed by other countries on American goods. If a nation taxes U.S. imports at a certain rate, the U.S. will respond with the same levy.

Trump / IG / “Whatever countries charge the United States, we will charge them,” President Trump said in an Oval Office meeting on Thursday.

Instead of an immediate rollout, Trump sets a deadline for April, allowing time for talks with trade partners. The delay softens the market’s reaction, as investors weigh the possibility of revised agreements before tariffs take effect. With negotiations on the table, Wall Street appears cautiously optimistic.

It is essential to note here that the U.S. stock surge comes following Trump's announcement of 'reciprocal' tariffs with no immediate implementation. For now, the implementation is delayed. 

Inflation Data Keeps Investors on Edge

While stocks enjoy a boost from trade news, the latest inflation report adds a layer of uncertainty. The Producer Price Index (PPI) for January reveals that wholesale prices remain stubbornly high, echoing recent consumer inflation numbers.

Anna / Pexels / Traders are now adjusting their expectations for interest rate cuts. With inflation showing little sign of cooling, the Federal Reserve may hesitate to ease monetary policy.

This complicates the outlook for the stock market, as lower interest rates typically fuel further gains. So, investors need to keep a keen eye on the market before making any move.

Earnings Season Delivers Mixed Signals

Corporate earnings remain a bright spot, with nearly 70% of S&P 500 companies reporting better-than-expected results. This strong showing reassures investors that corporate America remains resilient despite economic uncertainty.

Robinhood, the online brokerage platform, reports a surprisingly strong fourth-quarter profit, sending its stock higher. Meanwhile, Reddit struggles to impress Wall Street, as weaker user growth leads to a drop in share value. These mixed performances highlight the market’s selective nature: Solid earnings alone are not enough if future growth looks shaky.

What to Expect From U.S. Stocks in the Upcoming Days?

With trade tensions easing for now, investors are shifting their focus to economic data and Federal Reserve policy. While Trump’s tariff plan grabs headlines, inflation remains the bigger concern for the stock market.

If price pressures persist, hopes for a rate cut could fade, putting a cap on further stock gains. On the other hand, if inflation cools, Wall Street may push even higher. For now, U.S. stocks remain in a strong position, supported by corporate profits and a delayed tariff timeline.