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S&P 500 gains 6% and dollar gains after Trump announces tariff pause, excluding China

The S&P 500 index rose more than 6% on Wednesday after U.S. president Donald Trump announced he would pause many of his 10% and reciprocal tariffs for 90 days, starting immediately. He also increased the tariffs on China.

After Trump's announcement, the U.S. Dollar strengthened against other currencies and the yen. Treasury yields also gained but then lost some of their gains following a strong auction for 10-year Treasury Notes.

The stock market also saw gains after the Treasury auction.

Investors have expressed concern that Trump's tariffs, which are wide-ranging, could trigger a recession.

The Dow Jones Industrial Average grew by 2,041.87, or 5.42 %, to 39 687.46. The S&P 500 climbed 319.36, or 6.41 %, to 5,302.13, and the Nasdaq Composite jumped 1,231.86 or 8.7 %, to 16,519.45.

The MSCI index of global stocks rose 33.69 or 4.53% to 776.65.

The yield on the benchmark 10-year U.S. notes increased by 12.2 basis points, to 4.382% from 4.26% at late Tuesday. The dollar gained 0.64% against the Japanese yen to reach 147.22.

(source: Reuters)