Stocks bounced up on Tuesday on a perceived easing in trade worries and as US consumer confidence rebounded more than expected. The Dow Jones industrial average gained 1.8 percent, the S&P 500 rose 2.1 percent, and the Nasdaq rallied 2.5 percent. Long-dated US Treasury yields declined, the dollar rose, and oil prices slipped.

Stocks rebounded on news suggesting US-Europe trade talks were back on track after President Trump postponed his threat to impose tariffs on Europe of 50 percent from June 1 to July 9. That plus news that consumer confidence surged in May from April lows helped stocks rally across the board, paced by the NASDAQ and big technology shares.

A move lower in US Treasury yields was another plus for stocks after a global bond rally set off by reports that Japan may scale back its massive issuance of long-term debt. That generally calmed concerns that global bond yields would continue to rise, a big concern for risk assets. Nvidia was a big winner in the. tech sector ahead of its earnings release due Wednesday.

Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.

Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.