U.S. stocks climbed Wednesday after President Donald Trump pulled back on some of his tariffs temporarily. The move revived hope on Wall Street that Trump may avoid a worst-case trade war that grinds down economies and sends inflation higher.

The S&P 500 was 1.1% higher in afternoon trading, bouncing back from its sell-off that had erased all of its “Trump bump " since the president's election in November. The Dow Jones Industrial Average was up 493 points, or 1.2%, as of 2:45 p.m. Eastern time, and the Nasdaq composite was 1.3% higher.