Tariffs in Focus as Trump Considers Applying the Brakes – US Market Wrap

A late-session rally in US stocks capped another volatile day for global markets, which also saw wild swings in European bonds and equities. Geopolitical news once again dominated sentiment, with the White House delaying the imposition of auto tariffs in Canada and Mexico.

Wall Street remained focused on the latest developments involving US tariffs and how they may affect the economy and Federal Reserve decisions. The S&P 500 rose more than 1% after President Donald Trump announced a month-long delay in levies on automakers in Mexico and Canada. In stark contrast to their European counterparts’ plunge, treasuries saw small movements. German bunds have dropped the most since 1990. The dollar dropped 1%.

The market has been on a wild ride, and options traders expect it to continue as they assess the latest tariff developments and prepare for Friday’s monthly payrolls figures. Options traders expect the S&P 500 to move 1.3% in either direction, the most for a jobs day since the regional bank turmoil in March 2023.

The S&P 500 increased by 1.1%. The Nasdaq 100 gained 1.4%. The Dow Jones Industrial Average rose 1.1%.

The yield on 10-year Treasuries increased four basis points to 4.28 percent. The dollar fell against most major currencies.