US stocks rallied on Wednesday as President Trump provided a one-month auto tariff exemption on Mexico and Canada. The move Tuesday came after nearly 24 hours of the administration signaling of some potential relief on tariffs after Trump imposed 25% across-the-board duties on Canada and Mexico on Tuesday.

Asian shares were mostly higher Thursday, tracking a rebound on Wall Street after President Donald Trump pulled back on some of his tariffs hikes. U.S. futures were little changed, while benchmarks surged in Japan and China.

In the waning days of 2024, as the world braced for the start of the second Trump presidency, there was a theory making the rounds that went like this: Sure, economists said his agenda could spell disaster but there’s at least one institution that would be able rein in Trump’s worst instincts — Wall Street!

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.

Investors had bet strongly that Trump's agenda to lower taxes and usher in deregulation would support risk assets in a similar way to his first term when he frequently touted the stock market's performance.