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Asian and European stock indexes are rallying after President Donald Trump said he would pause "reciprocal" tariffs for 90 days for all trading partners except China.

U.S. stock futures are pointing lower after major indexes skyrocketed Wednesday. Goods from China entering the U.S. now face a 125% tariff , while Beijing has imposed an 84% levy on U.S. imports. Imports to the U.S. from other markets still face a 10% duty, and economists said the tariffs in place can still do economic damage .

Dow Jones Industrial Average futures are about 1.7% lower after the blue-chip index closed almost 8% higher yesterday, a gain of nearly 3,000 points. S&P 500 futures are falling 2.1% after the index jumped 9.5% for its biggest gain since 2008. Nasdaq futures are down 2.4% after the tech-heavy index surged more than 12% for its biggest gain since 2001.

Japan's Nikkei and Hong Kong's Hang Seng, which had ended trading yesterday before Trump's pause announcement, closed 9% and 2% higher Thursday, while the Stoxx Europe 600 index is up 5%.

The 10-year Treasury yield, which affects borrowing costs on all sorts of loans, is now down to 4.29% after moving as high as 4.52% Wednesday morning, its highest level since mid-February.

"The market discipline that forced Trump to blink was not only a bear market in equities but also and more importantly the spike in bond yields and credit spreads (especially HY ) and the risk of a disorderly collapse in the dollar," economist Nouriel Roubini wrote in a post on X. "So Trump blinked and decided for the 90 days tariff pause."

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