US stocks extended gains as President Donald Trump retreated from tariff threats, easing geopolitical concerns. Traders renewed their appetite for artificial intelligence bets, pushing major indexes higher. The market shift reflects a calmer trade outlook and renewed focus on tech growth.

This move follows weeks of volatility sparked by Trump's tariff rhetoric. The tariff retreat reduces immediate risks for multinational companies, while the AI resurgence highlights investor confidence in long-term technology trends. Broader market sentiment improved as uncertainty diminished.

Investors now watch for sustained momentum in AI stocks and further trade developments. The episode underscores how political headlines can sway markets, but also how sector-specific themes like AI can drive performance independently. Next, earnings reports will test this renewed optimism.