The S&P 500 jumped 9.5% on Wednesday after President Donald Trump announced a 90-day temporary suspension of tariffs for several countries. It marked the index’s biggest single-day gain since October 2008. Several heavyweight stocks in the S&P 500 staged a powerful comeback on Wednesday, wiping out all tariff-related losses. AI server giant Super Micro Computer (SMCI) surged over 15%, while AI software leader Palantir (PLTR) jumped 19%. Meanwhile, chip designer Broadcom (AVGO) rallied 18.6% amid broad semiconductor rally.
Since the April 2 close, AVGO has climbed 4.7%, PLTR is up 3.42%, and SMCI has risen 4.67%, fully recovering the losses triggered by the initial tariff announcement on Liberation Day. However, the broader S&P 500 still sits about 5% below its pre-Liberation Day level, reflecting lingering market caution.
Semiconductor Stocks Bounce Back
The 90-day tariff pause offers much-needed relief for semiconductor and chip stocks, which were under pressure due to rising trade tensions. Many of these companies rely heavily on global supply chains and international sales. By suspending new tariffs, the pause reduces cost uncertainty and the risk of supply disruptions. This boosts investor confidence and allows the sector to recover sharply.
Moving forward, uncertainty remains about what will follow the 90-day pause, leaving investors bracing for potential volatility. Moreover, tensions with China remain elevated, as Trump raised tariffs on Chinese goods to 125%.
Is SPY a Buy or Sell?
SPDR S&P 500 ETF (SPY) tracks the performance of the S&P 500 Index, which includes 500 of the largest publicly traded companies in the U.S.
According to TipRanks, SPY ETF has a Moderate Buy rating among 504 Wall Street analysts. That rating is based on 412 Buy, 84 Hold, and eight Sell recommendations made in the last three months. The average SPY share price target of $6161.20 implies a 12.3% upside from current levels.
