U.S. Stocks surge as Tariff Delay Brings Relief
U.S. stocks soared on Tuesday after President Donald Trump announced a delay on the planned 50% tariff on European Union imports. this decision eased fears of a trade war, boosting investor confidence.
The Dow Jones Industrial Average climbed nearly 740 points, while the S&P 500 rose by 2.05%. The tech-heavy Nasdaq Composite surged 2.46%, with Nvidia, Tesla, and Apple leading the gains.
Markets reopened after the Memorial Day holiday too positive news. Trump said the tariff hike, initially set for June 1, would be pushed back to July 9 following talks with EU Commission President Ursula von der Leyen.
The EU agreed to speed up trade talks to avoid mutual tariff pain,as stated by EU trade chief Maroš Šefčovič. Consumer confidence also rebounded in May, adding to the market’s optimism.
Tuesday’s rally saw over 90% of S&P 500 components close higher. small-cap stocks, represented by the Russell 2000, gained more than 2%. The bond market responded positively, with the 10-year yield falling to 4.43%.
Investors now look forward to a week filled with economic data and earnings reports. Nvidia, Okta, Macy’s, and Costco are set to release their quarterly results.
Minneapolis Fed President Neel Kashkari suggested the central bank shoudl keep interest rates steady due to trade uncertainties. Analysts believe this back-and-forth has kept markets volatile but hopeful.
