U.S. stocks experienced a recovery on Wednesday, driven by a significant announcement from the White House. The decision to delay tariffs on auto imports from Mexico and Canada for one month reflects a willingness to consider further exemptions for these key trading partners.

Initially, trade tensions had a negative impact on major indexes, despite new economic data indicating that the U.S. service sector expanded at a rate that exceeded Wall Street’s expectations last month. However, the market saw a notable upward shift following the announcement regarding the temporary exemption from the 25% duties on automotive imports.

• Recovery in U.S. stocks linked to tariff delay announcement.
• Initial trade tensions affected major indexes negatively.
• Service sector expansion exceeded expectations.
• Market responded positively to the temporary exemption news.

📎 Related coverage from: wsj.com