The Dow Jones Industrial Average rose by 0.94%, the Nasdaq climbed 0.97%, and the S&P 500 increased by 0.80%, according to session results.
Investors welcomed the White House’s announcement of a potential delay in the implementation of higher tariffs on imports from numerous countries, initially set for July 9.
“It is important because it shows unexpected flexibility” from Donald Trump, commented Christopher Low, an analyst at FHN Financial.
In an effort to protect domestic production, Trump imposed sector-specific tariffs, such as on steel and aluminum, upon his return to the White House.
He also targeted dozens of U.S. trading partners with prohibitive tariffs, which caused panic on Wall Street.
However, Trump decided on a pause until July 9 to allow for negotiations.
Indicators show a revision in the U.S. gross domestic product (GDP) variation for the first quarter, which worsened from the initial announcement, as consumption and export variables were weaker than estimated.
With annualized data, the GDP fell by 0.5% in the first quarter, instead of the previously reported 0.2%.
Jobless claims decreased from the previous week to 236,000, below economists’ expectations.
These figures, however, remain at levels “so low that they aren’t associated with a recession or even a significant cooling of the economy,” noted Patrick O’Hare, an analyst at Briefing.com.
However, renewed unemployment claims exceeded expectations, which could “indicate some weakness in the labor market,” he added.
