Stock market today: Dow, S&P 500, Nasdaq soar as Trump pauses EU tariff hikes for fast-tracked talks

US stocks surged on Tuesday, buoyed by improved prospects for a US-EU trade agreement after President Trump delayed the implementation of 50% tariffs on imports from the European Union.

Investor sentiment also benefited from a rebound in consumer confidence, which rose in May following five consecutive months of decline, coinciding with the administration’s easing of its toughest tariff threats.

The Dow Jones Industrial Average (^DJI) finished the day up about 1.8%, or over 700 points, while the benchmark S&P 500 (^GSPC) closed roughly 2.1% higher. The tech-heavy Nasdaq Composite (^IXIC) led the averages to the upside, rising around 2.5%.

After Monday's Memorial Day market closure, stocks mounted a furious comeback from Friday's losses as investors welcomed signs of thawing in frosty US-EU trade relations. Another boost came from a slide in Treasury yields and a stronger dollar (DX=F), credited to signs that Japan will cut back on bond sales after a market rout.