Stock market updates: Dow jumps after Trump tariff reversal

Stocks were poised for large gains after President Donald Trump said he was resetting a deadline for imposing tariffs on the European Union.

Stocks climbed Tuesday after President Donald Trump said he was resetting a deadline for imposing tariffs on the European Union.

The broad S&P 500 closed just over 2%, its biggest jump in more than two weeks, while the Dow Jones Industrial Average gained 740 points, or about 1.8%. The tech-heavy Nasdaq was up nearly 2.5%.

Meanwhile, the yield, or the percentage return demanded by investors, on the 10 year U.S. Treasury note declined to 4.45% after hovering at or above 4.5% for much of last week — a sign of increased interest in lending to the government.

Global investors also increased demand for government bonds around the world, including U.S. Treasuries, after Reuters reported that Japanese officials were considering borrowing less money than budget hawks had feared.

Trump's decision to delay a deadline on European Union trade talks lifted sentiment, even as he has shown a willingness to upend his trade policies on the fly. On Sunday, Trump posted on his Truth Social platform he had restored the date he would impose fresh tariffs on the E.U. to the previous deadline of July 9. Two days earlier, Trump threatened to hit the region with a 50% across-the-board tariff June 1, citing stalled trade negotiations.