One of the big stories of the year so far has been the increasingly volatile stock market. Indeed, a host of mega-cap stocks have failed to live up to their 2024 expectations. However, Nvidia (NVDA) has surged, with shares retaking the $114 level, with many wondering why the stock is surging to such heights today.
A massive part of its rebound has been the ongoing tariff debacle from the Trump administration. Specifically, US President Donald Trump announced sweeping 10% import duties on all nations on what he called ‘Liberation Day.’ After the market tanked, he announced a 90-day pause that saw Wall Street skyrocket. But is that all that has been driving Nvidia upward?
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Nvidia Jumps More Than 18% in Massive Bounce Back: But Why?
Although Nvidia was among the biggest gainers in the US stock market last year, things changed drastically in 2025. The stock failed to live up to its 174% increase in 2024. Moreover, that was a big reason why the stock is currently down more than 17% year to date.
However, it turned upward in a big way on Wednesday. Specifically, Nvidia (NVDA) retook the $114 level, with the stock jumping more than 18% throughout the trading day. Moreover, the increase affected the S&P 500 and Nasdaq, both gaining more than 7% and 10%, respectively.
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The primary reason for the increase appears to be the 90-day tariff pause instituted by US President Donald Trump. In a message posted to his Truth Social platform, Trump announced that he was halting the Liberation Day plan. Additionally, he said that the reciprocal pause would see a 10% tariff applied to all antiosn outside of China, effective immediately.
However, things still look dire concerning a potential trade war with China. He not only refused to pause its tariffs but also assigned an even greater 125% tariff on the nation. The response from investors should speak to their perspective on the updated plan. Only time will tell how things shift when the pause is lifted and if the administration moves forward with its original import taxes, considering how much trouble it caused the markets in just two weeks.