United Airlines and Microchip Technology were among the stocks showing the largest intraday reversals in their share prices in Wednesday afternoon’s furious rally following President Donald Trump’s decision to pause most of the largest tariff increases for 90 days.
In afternoon trading, the Atlanta-based airline and the semiconductor manufacturer soared 26.9% and 26.8%, respectively, from the session lows seen earlier in the day.
The moves came alongside a roaring rally in stocks after Trump temporarily dropped the highest new tariff rates on most U.S. imports to 10% for 90 days, while raising those imposed on Chinese imports to 125%, “effective immediately.”
United Airlines, Microchip and others would suffer under a global trade war that has dampened consumer confidence and curtailed spending. Delta Air Lines recently said it would not reaffirm its financial guidance for the full year, citing uncertainty caused by higher U.S. tariffs on imports.
Microchip and rivals such as ON Semiconductor, which soared 21.8% from its lows of the day, have slumped since the market peaked in February, despite semiconductors being excluded from the tariff increases, hurt by concern that the economy would slow and demand for chips would weaken.
In Wednesday’s historic afternoon rally, the S&P 500 soared as much as 10%. The Dow Jones Industrial Average advanced 3,100 points, or about 8.1%, while the Nasdaq Composite jumped as much as 12.7%, its second-largest gain ever.
“The market’s move upward is violent, and speaks to how badly the market was looking for clarity” on tariff policy, said Chris Brigati, chief investment officer at investment firm SWBC. “It appears President Trump’s motivation to get trade counterparts to the negotiating table is bearing fruit and that is a constructive development for the ongoing trade war.”
