U.S. stocks surge on Trump's tariff reprieve

Wall Street stocks jumped on Tuesday after President Donald Trump pushed back tariffs on Europe while U.S. Treasury bond yields retreated following last week's surge.

Trump on Monday said he would pause his threatened 50% tariffs on the European Union until July 9 to allow for talks, reversing an escalation that upset markets on Friday.

Analysts also cited a surprisingly big improvement in U.S. consumer confidence and a pullback in Treasury yields, with the 30-year bond falling below 5% following reports Japan will temper its long-term bond issuance.

The S&P 500 is now within 3.6% of its record closing high reached on February 19, having plunged as much as 18.9% below that level in the wake of Donald Trump's erratic tariff announcements, which have whipsawed markets for much of his second term.

On Wednesday, Trump pushed back against an emerging critique of his on-again, off-again tariff threats, which has been derisively summed up as the "TACO trade." The tongue-in-cheek term coined by a Financial Times columnist — which stands for "Trump always chickens out" — describes a pattern in which Trump announces heavy new tariffs, sending markets tumbling, and then later pauses or lightens them, causing markets to rebound.

Reference Sources

1. thesunmy - US stocks jump on easing tariff worries, lower bond yields
2. thestarmy - US stocks surge on Trump's tariff reprieve
3. cnbc - Trump says he's not 'chickening out' on trade: 'It's called negotiation'
4. nytimesen - Stocks Rally on the ‘TACO Trade’ After Trump’s Latest Tariff Delay
5. bussinesstimes - Asia: Stocks track Wall Street rally as trade fears ease, eyes on Japan debt - The Business Times

China blamed for cyberattacks against Czech foreign ministry communication network

(Source: AFP)

The Czech government has identified China as being responsible for cyberattacks against a communication network of the Czech foreign ministry.

The malicious activities started in 2022 and targeted the country’s critical infrastructure.

The Czech ministry said it believed the Advanced Persistent Threat 31, or APT31 group, associated with the Chinese Ministry of State Security, was behind the campaign. It was not immediately clear what specific information was seized or what damage was caused by the attacks.

The Czech ministry said a new communication system has already been put in place.

The European Union and its member states, together with international partners, stand in solidarity with Czechia regarding the malicious cyber campaign that targeted its Ministry of Foreign Affairs.

EU member states have urged Chinese authorities to take action against malicious cyber activities undertaken from their territory.

The Czech government has summoned the Chinese ambassador to Prague to make it clear to the Chinese side that such hostile actions have serious consequences for their bilateral relations.

Reference Sources

1. apnews - Czech Republic blames China for cyberattacks against its foreign ministry communication network
2. mzv - Statement by the Government of the Czech Republic
3. dwen - Czech Republic summons Chinese ambassador over cyber attacks
4. consiliumeuropa - Cyber: Statement by the High Representative on behalf of the European Union on malicious behaviour in cyberspace against Czechia
5. nikkei - EdU stands solid with Czech Republic after alleged Chinese cyberattack

xAI to pay Telegram $300M to integrate Grok into the chat app

(Source: Reuters)

Elon Musk's AI start-up, xAI, has agreed to pay Dubai-based messaging platform Telegram US$300M to deploy its Grok chatbot on the platform and integrate it into its apps for a year. Telegram's CEO, Pavel Durov, announced the deal on social media, stating that Telegram would receive US$300M in cash and equity from xAI, plus 50% of revenue from xAI subscriptions sold via Telegram.

The deal aims to tap into the platform's more than one billion users and sharpen its competitive edge in the booming artificial intelligence market. Telegram passed 1 billion monthly users in 2025, and the company is set to raise at least US$1.5B in a bond issue on Wednesday, according to a report from the Wall Street Journal. Earlier this year, xAI made the Grok chatbot available to Telegram's premium users.

Reference Sources

1. cna - Telegram, Musk-owned xAI partner to distribute Grok to messaging app's users
2. bbc - Telegram announces partnership with Musk's xAI
3. cnbc - Elon Musk's xAI partners with messaging app Telegram in $300 million Grok deal
4. techcrunch - xAI to pay Telegram $300M to integrate Grok into the chat app

The CommonWealth English daily news digest is a service curated by the CommonWealth English team with the help of AI tools.

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