S&P 500 climbs on easing US–EU trade worries

On Tuesday, the S&P 500 surged by over 1%, extending Monday's gains after US President Donald Trump delayed the imposition of import tariffs on EU goods, Bloomberg reports.

Meanwhile, Japan’s 20-year bond yield slid by as much as 21 basis points. 10-year treasuries also dropped by 6 basis points. This shift reflects the Asian nation’s efforts to stabilize its domestic debt market. According to the agency, the declining yields and reduced bond supply will likely curb competition for dollar assets.

As Bloomberg notes, the reversal in the greenback came after falling over 7% this year. Trump's tariff policies and the risk of a widening US budget deficit are undermining the appeal of the dollar.

Investors are also awaiting the release of the American Personal Consumption Expenditures report. According to a consensus forecast of experts surveyed by the agency, April's figure is expected to rise by 0.1%.