Investing.com - Canada’s main stock exchange edged lower on Wednesday, but roared back to life when U.S. President Donald Trump’s newest tariff announcements resuscitated markets.

By the 4:00 ET close, the S&P/TSX 60 index jumped by 69 points, or 5.1%.

The Toronto Stock Exchange ’s S&P/TSX composite index finished up 1,220 points or 5.4%, after logging a fourth consecutive day of declines on Tuesday, bringing it down to its lowest closing level since August 12.

Earlier Wednesday, reciprocal tariffs went into effect in over 180 countries, including 46% on Vietnam, 20% on the EU, 24% on Japan, 32% on Taiwan, and a host of other countries. Trump later dropped the reciprocal tariffs to 10% on countries for 90 days to allow trade deal negotiations on a country-by-country basis, easing fears about a brewing global trade war and potential recession.

China, however, was not so lucky, as Trump imposed a significant increase in tariffs on the country, raising the rate from 104% to 125%. This was in response to China’s earlier announcement of an additional 50% of tariffs on U.S. items, increasing the rate from 34% to 84%.

U.S. stocks soar

U.S. stocks fell in early trading, before reaching record gains on Wednesday, following Trump’s announcements.

By the 4:00 ET close, the Dow Jones Industrial Average gained 2,962.9 points, or 7.9%, the S&P 500 bounced 474 points, or 9.5%, and the NASDAQ Composite flew up 1,857 points, or 12.2%.

The Dow was up over 3,000 points for the first time in its history. The S&P 500 had its best day since 2008 and its 9th best day ever. It was the 2nd biggest gain on record for the Nasdaq .

Over the course of the four days prior, the Dow had lost more than 4,500 points, over 10%, while the S&P 500 sustained a 12% loss. The Nasdaq was down more than 13% in that period.

Crude falls to four-year lows, then rise

Oil prices slumped Wednesday, dropping to their lowest levels in more than four years as the trade war between China and the U.S., the world’s two biggest economies, intensified.

After the tariff news, prices quickly rose, following suit with the markets.

At 06:30 ET, Brent futures gained 2.9% to $65.72 a barrel, and U.S. West Texas Intermediate crude futures were rising 0.5% to $63.04 a barrel.

Oil has lost about one-fifth of its value since Trump revealed higher tariffs on its trading partners on April 2, the biggest five-day drop since March 2022.

Gold lowers

Gold prices were inching lower on Wednesday, as it has served as a safe haven amid the chaos surrounding U.S. trade policy.

As of 6:30 ET, spot gold had dropped 0.2% to $3,078.32 per ounce. Gold futures expiring in June fell 0.3% to $3,092.12 an ounce on Wednesday.

Gold had fallen below $3,000 per ounce earlier this week to its lowest level since March 13.

Bullion had reached a record high on April 3 after Trump announced his sweeping tariffs, but hefty losses in other financial markets led to investors selling gold to cover losses elsewhere.

(Scott Kanowsky also contributed to this article)