U.S. stocks climbed Wednesday after President Donald Trump pulled back on some of his tariffs temporarily. The move revived hope on Wall Street that Trump may avoid a worst-case trade war that grinds down economies and sends inflation higher.

The S&P 500 rose 1.1% Wednesday, bouncing back from its sell-off that had erased all of its “Trump bump” since Election Day.

U.S. stocks are remaining relatively calm Monday, and indexes are drifting in mixed trading ahead of President Donald Trump’s latest deadline on tariffs. The S&P 500 was 0.1% higher in morning trading.

The hope on Wall Street is that Trump is using the threat of tariffs as a tool for negotiations and that he’ll ultimately go through with policies that would mean less damage for the global economy and trade. Tariffs could raise prices on everyday items even more for U.S. households, when high inflation has proven to be stubborn to subdue fully.

All three major U.S. markets sank before regaining lost ground on fears a trade war will hobble the world’s largest economy and boost inflation.

Top Wall Street executives, financial regulators and analysts gathered in New York’s financial district said they were bracing for market volatility from President Donald Trump’s latest round of tariffs on the biggest US trading partners.

Treasury Secretary Scott Bessent has dismissed worries about a Wall Street Trump tariff selloff after the White House declared a trade war on Canada, China, and Mexico that has spooked investors. Bessent told Fox & Friends that the commander-in-chief’s top priority is living the living standards of ordinary Americans despite market concerns over his move to slap tariffs of between 20% and 25% tariffs on three of this country’s main