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 calmed 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 to 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.
Consumer confidence also rebounded in May, adding to the positive sentiment. Over 90% of S&P 500 components closed higher, and the Russell 2000 small-cap index rose more than 2%.
The bond market responded positively, with U.S. Treasurys rallying and yields falling. The 10-year yield dropped to 4.43%, and the 30-year yield fell to 4.94%. The dollar strengthened, and global bond markets reacted well to speculation about Japan scaling back long-term bond issuance.
Investors now look forward to a busy week of economic data and earnings. Nvidia will report quarterly results on Wednesday, followed by okta, Macy’s, and Costco.
Minneapolis Fed President neel Kashkari suggested the central bank should keep interest rates steady due to trade uncertainty. Analysts believe the recent back-and-forth has kept markets volatile but hopeful.
