US big banks rise as Trump announces 90-day tariff pause

Shares of big U.S. banks rise, reversing course after President Donald Trump said on Wednesday he authorized a 90-day pause, effective immediately, as part of his tariff plan

Morgan Stanley MS.N up 8.4%, Goldman Sachs GS.N up 8.1%, and JPMorgan Chase JPM.N up 6%

Citigroup C.N up 5.6%, Wells Fargo WFC.N up 5%, and Bank of America BAC.N up 4.1%

Trump also raised the tariff rate for China to 125%, after China said it would impose 84% tariffs on U.S. goods from Thursday, up from the 34% previously announced

Trump's "reciprocal" tariffs on dozens of countries had taken effect on Wednesday, including massive 104% duties on Chinese goods

Investment banks are expected to take a hit as tariff-driven uncertainty hampers dealmaking and capital markets activity, while lower consumer confidence could curb spending and loan demand

Including session moves, the KBW Bank Index .BKX is now down 11% since Trump's tariff announcement last week

Big banks begin reporting quarterly results this week