Shares of Charles Schwab (SCHW) surged 7.18% in intraday trading on Wednesday, as President Donald Trump announced a 90-day pause on "reciprocal tariffs," effective immediately. This unexpected development provided a significant boost to asset managers and financial stocks, reversing their earlier downward trend amid escalating trade tensions between the United States and China.

The announcement came as a relief to investors who had been concerned about the potential negative impact of a prolonged trade war on financial markets and the broader economy. Charles Schwab, one of the largest U.S. brokerages and a major player in the asset management industry, saw its stock price rally alongside peers such as KKR, Apollo, and BlackRock, which all posted significant gains following the news.

While the 90-day pause offers a temporary reprieve, market participants remain cautious about the long-term implications of the trade dispute. Analysts note that asset managers like Charles Schwab could still face challenges if trade tensions persist, as prolonged economic uncertainty and market volatility could potentially impact their assets under management and fee income. However, for now, investors appear to be embracing the positive sentiment brought about by the tariff pause, driving Charles Schwab's stock to outperform the broader market.