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European markets are on track to rise sharply when trading begins Thursday after U.S. President Donald Trump reversed course on tariffs after the European market close, sending global markets higher.

In a volatile week for markets that has been marked by sharp moves higher and lower, the pan-European Stoxx 600 ended the prior session down 3.5% at its lowest closing level since January 2024.

But later on Wednesday, Trump temporarily reduced new tariff rates on imports from most U.S. trade partners to 10% for 90 days — a sharp reversal from previous comments in which he insisted duties would not be lifted.

U.S. stocks rallied after Trump’s announcement, with the S&P 500 soaring more than 9% during Wednesday’s session to see its third-largest gain in a single day since World War II.

The Dow Jones Industrial Average jumped 7.87% — its biggest percentage advance since March 2020 — and the Nasdaq Composite jumped over 12%, notching its largest one-day jump since January 2001 and second-best day ever.

Deutsche Bank Research’s George Saravelos said some version of the so-called “Trump put” — a play on options terminology that suggests the president would keep the stock market from falling too far — is back.

“The administration is finally signalling responsiveness to the very extreme market conditions we highlighted in the morning,” he said in a note Wednesday.

“At the margin, this should reduce the probability that such an extreme policy mix returns. It is more likely that the administration accepts negotiated outcomes on trade (and other) policies, and it is more likely the administration becomes responsive to market pressure, if this continues.”

Trump’s shift in policy came on the same day his so-called reciprocal tariffs came into effect, with close to 90 countries being targeted.

China, however, did not get a reprieve from the president. He increased tariffs on the country to 125% after China said earlier in the day that it would increase duties on imports from the U.S. to 84%.

The European Union also retaliated Wednesday, with the bloc’s lawmakers approving its first set of countermeasures in response to the steel and aluminum tariffs imposed by the U.S. in March.

Asia-Pacific shares were last widely higher in Thursday trading, with Japanese markets leading gains in the region.

— CNBC’s Dan Mangan and Sean Colon contributed to this report.