() A recent stock market rally has given those saving for retirement hope that the worst of President Donald Trump’s trade wars has passed.

Shares on Tuesday surged after Trump backed down from his threat to impose steep tariffs on the European Union as soon as June 1. Instead, Trump extended the deadline to July 9.

“Remember, I am empowered to ‘SET A DEAL’ for Trade into the United States if we are unable to make a deal, or are treated unfairly,” Trump said on social media.

The stock market immediately bounced, snapping a four-day losing streak, as fears receded over a potential trade war with the 27-nation bloc.

Tariffs on the EU would have affected more than half a trillion dollars of goods imported to the United States annually, and would have immediately led to price increases on a wide variety of items for Americans, including medical supplies, wine, perfume and oil.

The delay has allowed investors to regain hope that a deal can be made within the new timeframe. A new consumer confidence report showed a 12.3-point rise in May.

The new numbers mark a major jump in American expectations for their income, business conditions and the job market, which saw its lowest reading since 2020 just last month.

Paul Nolte, senior wealth adviser at Murphy and Sylvest, told Reuters investors have “figured Trump out a little bit.”

“He’s like the poker player at the table that you know is making some bets and then when pressed by the other players at the table, he folds,” Nolte said.

Trump tariffs: Stock market rebound impacts 401(k), retirement plans

It’s been a roller coaster ride for stock markets and the savings plans linked to them since tariffs went into effect.

“When (Trump) came out with guns blazing April 2, the market thought the world was ending,” Nolte said. “The selloff was so strong and quick that you would expect some rebound, and the rebound has been so sharp and quick that you would expect some type of pullback as investors digest it and ask themselves what the terrain really looks like.”

For those who have avoided reviewing their 401(k)s and other savings plans amid the chaos, recent market developments could help bring these accounts back to their status quo.

Despite big market swings throughout spring, the major indices have changed marginally in the long run. The Dow, the Nasdaq and the S&P 500 were down slightly heading into the opening bell after Tuesday’s rally, but bond yields dipped Tuesday, meaning the value of bonds has gone up.

‘s Anna Kutz contributed to this report.