(Updates with comment, details after Trump tariff annnouncement)

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US Treasury yields pare gains after auction

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Trump tariff announcement drives stocks sharply higher

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Dollar up vs yen and other currencies

By Caroline Valetkevitch

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

higher on Wednesday, with the Nasdaq last up about 10%, 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 - which had been lower earlier in the day -

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.

Trump declared a 90-day pause on reciprocal and 10% tariffs that

he had unveiled initially last week, while raising duties on

China.

Trump's unveiling of sweeping tariffs late last Wednesday

had rattled markets, with stocks selling off sharply in the days

following the announcement.

"This was definitely a surprise, considering that the

administration consistently said they would not back off the

tariffs and that they were non-negotiable," said Steve Sosnick,

chief market strategist at Interactive Brokers in Greenwich,

Connecticut.

"That said, the magnitude of the rally shouldn't be

surprising..." he said. "This is a very understandable relief

rally."

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 2,541.92

points, or 6.73%, to 40,180.98, the S&P 500 rose 392.26

points, or 7.87%, to 5,375.03 and the Nasdaq Composite

rose 1,529.03 points, or 10.00%, to 16,794.65.

Stocks had been higher on Wednesday before the announcement,

and U.S. indexes added to gains following the Treasury auction.

MSCI's gauge of stocks across the globe rose

33.55 points, or 4.52%, to 776.51.

Against the Japanese yen, the dollar strengthened

1.25% to 148.08.

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

17.1 basis points to 4.431%, from 4.26% late on Tuesday.