(Updates after Trump announcement on tariffs)

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US Treasury yields pare gains after auction

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Trump announcement drives stocks sharply higher

By Caroline Valetkevitch

NEW YORK, April 9 (Reuters) - Major stock indexes shot

higher on Wednesday, with the S&P 500 last up more than 6%,

after U.S. President Donald Trump said he had authorized a

90-day pause on many of his reciprocal and 10% tariffs,

effective immediately, even as he raised them on China.

The U.S. dollar strengthened against the yen and other

currencies after Trump's announcement while Treasury yields

pared gains after an auction of 10-year Treasury notes saw

strong demand.

Stocks had also added to gains following the Treasury

auction.

Many investors have been worrying that Trump's wide-ranging

tariffs could be severe enough to trigger a recession.

The Dow Jones Industrial Average rose 2,041.87

points, or 5.42%, to 39,687.46, the S&P 500 rose 319.36

points, or 6.41%, to 5,302.13 and the Nasdaq Composite

rose 1,231.86 points, or 8.07%, to 16,519.45.

MSCI's gauge of stocks across the globe rose

33.69 points, or 4.53%, to 776.65.

The yield on benchmark U.S. 10-year notes rose

12.2 basis points to 4.382%, from 4.26% late on Tuesday. Against

the Japanese yen, the dollar strengthened 0.64% to

147.22.