Wall Street’s roller-coaster ride created by President Donald Trump’s trade policies whipped back upward on Tuesday, this time because of a delay for his tariffs on the European Union.

The S&P 500 leaped 2% in its first trading since Trump said Sunday that the United States will delay a 50% tariff on goods coming from the European Union until July 9 from June 1. The European Union’s chief trade negotiator later said on Monday that he had “good calls” with Trump officials and the EU was “fully committed” to reaching a trade deal by July 9.

The Dow Jones industrial average jumped 740 points, or 1.8%, and the Nasdaq composite rallied 2.5%. They more than recovered their losses from Friday, when Wall Street’s roller coaster dropped after Trump announced the tariffs on France, Germany and the other 25 countries represented by the European Union.

Caution still remains on Wall Street, even as the S&P 500 has climbed back within 3.6% of its record after falling roughly 20% below the mark last month.

On Tuesday, though, optimism ruled. The stock market’s gains accelerated after a report released by the Conference Board said confidence among U.S. consumers improved by more in May than economists expected.

On Wall Street, Nvidia rallied 3.2% and was the strongest single force driving the S&P 500 higher ahead of its profit report coming on Wednesday.

Informatica climbed 6% after Salesforce said it would buy the AI-powered cloud data management company in an all-stock deal valuing it at about $8 billion. Salesforce rose 1.5%.

They were part of widespread gains across the U.S. stock market, where 93% of the stocks within the S&P 500 rose.

One of the outliers was AutoZone, which fell 3.7% following a mixed report on its performance for the three months through May 10

All told, the S&P rose 118.72 points to 5,921.54. The Dow added 740.58 to 42,343.65, and the Nasdaq gained 461.96 to 19,199.16.

In the bond market, Treasury yields eased to take some of the pressure off the stock market. The yield on the 10-year Treasury fell to 4.44% from 4.51% late Friday. It had been rising last week, in part because of worries about the U.S. government’s rapidly increasing debt.

In stock markets abroad, European indexes mostly rose, while Asian indexes were mixed.

— Associated Press