Trump's Tariff Turnabout: A Surprising Market Rebound

President Donald Trump paused newly imposed tariffs on numerous countries, causing a surge in global stock markets. This surprise move, coming shortly after heightened trade tensions with China, led to increased market volatility. As Trump modifies his stance, economic uncertainties remain amid ongoing trade negotiations.

In a dramatic shift that took the financial world by surprise, U.S. President Donald Trump announced a pause on the newly imposed tariffs against several countries, leading global stock markets to rally on Thursday. The move comes amid escalating trade tensions with China, the world's second-largest economy.

The unexpected decision came less than a day after steep tariffs were enacted on numerous trading partners, causing significant market volatility reminiscent of the early COVID-19 pandemic days. Financial markets responded positively, with the benchmark S&P 500 index climbing 9.5% by the close of trading.

Internationally, the announcement reverberated across Asian and European markets, triggering sharp rebounds. However, trade tensions remain palpable, especially with China, as Trump declared a further hike in tariffs on Chinese imports. This economic tit-for-tat continues to unsettle global economic stability.

(With inputs from agencies.)