Wall Street Rebounds as White House Signals Tariff Relief for Automakers

US stock indices staged a significant recovery on Wednesday, overcoming early volatility to post strong gains. The Nasdaq led the rally, climbing 1.5% to 18,552.73, while the S&P 500 and Dow Jones Industrial Average both rose 1.1% to finish at 5,842.63 and 43,006.59, respectively. The market's turnaround was primarily driven by a shift in trade policy sentiment. Initial weakness, fueled by fears regarding new tariffs on China, Mexico, and Canada, dissipated after reports emerged that the Trump administration would grant a one-month delay for automakers. The White House confirmed these exemptions following discussions with executives from General Motors, Ford, and Stellantis. Press Secretary Karoline Leavitt further indicated that the administration remains open to additional exemptions, easing investor anxiety over potential supply chain disruptions. This policy pivot provided the necessary catalyst for the major averages to regain ground lost over previous sessions. Mixed economic indicators provided a complex backdrop for the session. The ADP private sector employment report showed a sharp slowdown, with only 77,000 jobs added in February, well below the 140,000 forecast. Conversely, the ISM services PMI unexpectedly rose to 53.5, signaling continued growth in the services sector and providing a counter-narrative to the weak payroll data. Sector performance was varied. The NYSE Arca Airline Index surged 4.3%, and gold stocks rose 4.0% amid higher precious metal prices. Steel stocks also gained 3.5%, while oil producers declined sharply in tandem with a steep drop in crude oil prices.