US stocks spiked in the last hours of trading, in reaction to President Donald Trump's latest announcement on tariffs.
The major stock major averages, Nasdaq, S&P and Dow Jones all rose, partly offsetting the steep losses posted over the past few sessions, after Trump had announced the global tariffs.
In more good news for financial markets, the US dollar — which had been lower earlier in the day — also strengthened against the yen and other currencies after Trump's tariff delay announcement.
US Treasury yields meanwhile pared gains after an auction of 10-year Treasury notes saw strong demand.
The rally in the financial markets comes as many had worried that Trump's global tariffs could trigger a recession in the US.
Trump praises 'beautiful' bond market
President Donald Trump said the US bond market "now is beautiful," seeking to reassure reporters that his tariff delay had allowed the bond market to recover.
US government bonds, also known as Treasurys, had been particularly volatile in recent days, especially since Trump announced global tariffs.
The bond market is where a country's debt is traded over a repayment horizon of up to 50 years. Unlike the stock market, the investment of bonds is longer term and it can be an indicator of confidence or a lack there of for a country's economy.
Investors seek higher returns when they judge a government's debt to be riskier, pushing up bond yield.
US Bond yields jumped in recent days, before falling slightly after Trump abruptly reversed course and paused the tariffs.
The bond hike was notable because US Treasury yields have historically dropped, not risen, during uncertain and volatile times for the stock market, as bonds are usually seen as some of the safest possible investments.
Trump acknowledged the "very tricky" state of the crucial US bonds market prior to his decision to pause the global tariffs.
"I was watching the bond market. The bond market is very tricky. I was watching it," he told reporters.
"I saw last night where people were getting a little queasy," Trump added.
