German stocks rallied 1.5% as the market continues to feel reverberations from an agreement by the two parties that will form the country’s next government to loosen constitutional limits on borrowing. It’s a major turnaround in German budget policy and opens the way for new borrowing and spending over the next decade.

The S&P 500 was up 0.1% in early trading. It’s coming off a three-day losing streak after setting an all-time high last week. The Dow Jones Industrial Average was up 201 points, or 0.5%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.2% lower.

U.S. stock indexes fell sharply Thursday as Wall Street’s frenzy around artificial-intelligence technology faltered some more. Concerns about the U.S. economy’s future have been behind much of the drop,

U.S. stocks climbed after President Donald Trump pulled back on some of his tariffs, raising hopes he may avoid a worst-case trade war that grinds down economies and sends inflation higher.