Before the announcement, the Dow Jones Industrial Average had closed up 235.36 points, or up 0.56 per cent, to 42,225.32, while the S&P 500 rose 37.90 points, or 0.67 per cent, to 5,670.97. The Nasdaq Composite had ended the session up 151.16 points, or 0.87 per cent, at 17,601.05.
MSCI’s gauge of stocks across the globe rose 3.96 points, or 0.48 per cent, to 836.11.
But some investors noted that the market’s reaction going forward would depend on responses from US trading partners.
“We’ve just got one side of the story, which is what we’re doing. And the other side of the story is how other countries respond to what we’re doing,” said Walter Todd, chief investment officer at Greenwood Capital in Greenwood, South Carolina.
Todd said that would be “a big component to how the market ultimately digests what is being said right now”.
Gold prices pushed closer to record highs, boosted by safe-haven inflows after the announcements.
Spot gold rose 0.64 per cent to US$3,130.38 an ounce. US gold futures rose 1.3 per cent to US$3,159.30 an ounce.
In fixed income, US Treasury yields fell, with two-year yields dropping to their lowest level in three weeks after Trump announced the tariffs.
The yield on benchmark US 10-year notes fell 1.6 basis points to 4.14 per cent, from 4.156 per cent late on Tuesday. The 30-year bond yield fell 0.5 basis points to 4.5098 per cent from 4.515 per cent late on Tuesday.
The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 0.5 basis points to 3.858 per cent, from 3.863 per cent late on Tuesday.
In currencies, the dollar lost ground.
After the announcements, the euro was up 0.38 per cent at US$1.0834 while sterling strengthened 0.54 per cent to US$1.2989.
Against the Japanese yen, the dollar weakened 0.17 per cent to 149.36.
In energy markets, oil prices, which had settled the regular session higher, lost ground after the tariff news stoked concerns that a global trade war may dampen demand for crude.
US crude fell 0.27 per cent to US$71.00 a barrel after settling up 0.72 per cent, while Brent fell to US$74.07 per barrel, down 0.59 per cent after settling at US$74.95 per barrel.
