Stocks jumped on Tuesday, after Mr. Trump announced over the Memorial Day weekend that he would pause the implementation of steep tariffs on the European Union until July 9 to allow more time for trade negotiations with the 27-country bloc.

The S&P 500 climbed 90 points, or 1.6%, to 5,893 points, as of 10:43 a.m. EST, while the Dow Jones Industrial Average gained 499 points, or 1.2%. The tech-heavy Nasdaq Composite rose 2.0%.

Mr. Trump had initially threatened to impose a “straight 50% Tariff” on the trading bloc, effective June 1. The news, announced by the president in a Truth Social post Friday, sent stocks tumbling as investors braced for more uncertainty. 

Wall Street rallied after President Trump announced he would delay the implementation of EU tariffs, from June 1 to July 9.

The administration has been working to strike deals before July 9, when the 90-day pause on reciprocal tariffs is set to end. The president announced broad terms of a trade deal with with the United Kingdom earlier this month, followed by a tariff truce with China. 

Maros Sefcovic, chief trade negotiator for the EU, said Monday, following calls with top U.S. officials, that the bloc was “fully committed” to reaching an agreement with the U.S. by the July deadline.

European stocks were up amid news of the U.S.-EU trade talk progress, with Germany’s DAX adding 0.7% and the CAC 40 in Paris picking up 0.2%. London’s FTSE 100 gained 0.8%