NEW YORK-US and European stocks jumped, the dollar strengthened and Treasury yields rose on Tuesday after the United States said it would delay tariffs on some Chinese products, easing concerns that a protracted trade war would harm global growth.

President Donald Trump backed off his plan to impose 10% tariffs on Sept. 1 on remaining Chinese imports, delaying duties on cellphones, laptops and many other consumer goods in the hopes of blunting their impact on U.S. holiday sales.

Equity, debt and currency markets sharply reversed course minutes after Wall Street opened for trade on news from Hong Kong about a call Chinese Vice Premier Liu He held with U.S. officials, according to China’s Commerce Ministry.

Liu spoke with U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin on Tuesday evening, a ministry statement said.

Shares of Apple Inc .AAPL.O, a likely beneficiary of the tariff delay, rose 4.5% and the information technology sector rose 2.46%, the biggest gainer among the 11 S&P 500 sectors. Investors are closely watching the headlines and that is what markets are trading off of, said Candice Bangsund, a global asset allocation strategist at Fiera Capital in Montreal.

“The news today is obviously good news. Risk appetite has improved drastically but it’s consistent with the environment of elevated uncertainty,” Bangsund said.

Global growth should re-accelerate later this year as major central banks cut interest rates and recent economic data proves better than where markets have traded on it, Bangsund said.

The damage created by tariffs will not go away because economic uncertainly remains, said Kristina Hooper, chief global market strategist at Invesco in New York.

“We can continue in the situation we’ve been in for months which is one step forward, further into the trade war abyss, followed by one step or a half step backwards,” Hooper said. Wall Street rallied on news of the tariff delay.

The Dow Jones Industrial Average .DJI rose 372.54 points, or 1.44%, to 26,279.91. The S&P 500 .SPX gained 42.57 points, or 1.48%, to 2,926.32. The Nasdaq Composite .IXIC added 152.95 points, or 1.95%, to 8,016.36.

Major stock bourses in Europe also surged, with the Euro STOXX index .STOXX50E of eurozone shares closing 0.92% higher.