Stocks rally after Trump announces pause on EU tariffs

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.