With Wall Street resuming its surge, American equities are trading as if Donald Trump's "Liberation Day" shock had never occurred.

At the opening, the S&P 500 surged 2.8%, breaking beyond early April levels. Thanks to a rebound in megacap tech stocks, the Nasdaq 100 Index appeared poised for a bull market. Treasuries declined when the dollar increased.

The Trump administration's softer stance toward the trade disputes that rocked world markets only weeks ago is evident to investors in the lessening of trade tensions between the US and China. Traders also moved back their wagers that the Federal Reserve may not need to lower interest rates as soon, since optimism was strong that the US economy might escape a recession.

With the Nasdaq 100 Index rising 3.4%, the rise was spearheaded by big tech equities that had been severely damaged during the selloff. Safe haven assets, including gold, the Japanese yen, and the Swiss franc, all fell at the same time. The euro was headed for its worst day of the year after plunging as much as 1.5% to $1.1084.

A quarter-point drop in September is currently preferred by swaps linked to Fed meetings. They hinted to a shift as early as July last week.

Roberto Scholtes, head of strategy at Singular Bank, stated that it is doubtful that US stocks would reach their previous highs in the near future. Even if a compromise is made, he said, businesses would still be negatively impacted financially by the ambiguity and uncertainty surrounding US economic policy.