Stocks rose Tuesday after President Donald Trump did a 180-degree turn on his threat to place a massive 50% tariff on goods imported from the European Union. The Dow closed higher by 741 points, or 1.

Just as investors thought they could take a break from tariff scares, President Trump’s threats of new levies against the EU and Apple threw trade tensions back into focus ahead of a long holiday weekend.

"These retreats are so frequent that investors should rationally expect them. So why do markets still react to the initial announcements?" UBS's Paul Donovan noted.

President Donald Trump and EU President Ursula von der Leyen agreed to fast-track trade talks, delaying further tariffs until at least July 9.

The European Union is seeking to accelerate trade talks with the US just six weeks before President Donald Trump’s threatened 50% tariffs come into effect.

Asian stock markets were mixed as unease about President Trump’s policy shifts prevailed following the postponement of tariffs on the European Union and the threat of new duties on iPhones and other smartphones made overseas.

Stocks dropped on Friday on renewed fears of an escalating trade war after Donald Trump threatened Apple and the EU with tariffs.

Europe’s trade commissioner shared phone calls with Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer on Monday as both sides of the Atlantic seek to reach a trade deal and head off President Donald Trump’s sweeping tariff threat.