The retail sector popped in Wednesday afternoon trading after President Donald Trump issued a 90-day pause on reciprocal tariffs for all countries except China. Trump said his decision to pause the full effect of tariffs was based on more than 75 nations contacting U.S. officials to negotiate a solution to trade concerns.

Notable movers included Wyafair (W) +19.1%, Urban Outfitters (URBN) +17.2%, Macy's (M) +14.4%, DraftKings (DKNG) +10.5%, Walmart (WMT) +9.2%, Chipotle (CMG) +9.0%, Lululemon (LULU) +8.8%, Amazon (AMZN) +7.7%, Target (TGT) +6.7%, General Motors (GM) +6.6%, and Domino's Pizza (DPZ) +6.2% were just a few of the retail names that shot higher.

China-focused stock such as Tesla (TSLA) +12.4%, Wynn Resorts (WYNN) +9.2%, Nike (NKE) +8.1%, and Starbucks (SBUX) +5.9% were also higher despite the tariff rate on China being lifted to 125% from 104%. It is possible algo trading based off headlines could be impacting the wild swings.

The retail sector has been impacted by the uncertainty around the tariff battle and the rising risk of a recession in the U.S. Looking further ahead, any new tariff deals will not impact every sector or company in the same way, leaving investors with a tricky path to separating the winners from the losers.