U.S. Stock Futures Surge as Trump Delays EU Tariff Hike
U.S. stock futures surged early Tuesday morning after President Donald Trump announced a postponement of a proposed 50% tariff on European Union imports, easing investor fears over escalating trade tensions.
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Dow Jones Industrial Average futures rose by 430 points, or approximately 1.03%. Meanwhile, S&P 500 futures increased by 1.22%, and Nasdaq 100 futures saw a gain of 1.4%, reflecting broad optimism in the markets.
Over the Memorial Day weekend, President Trump revealed he would postpone the implementation of the 50% tariff on EU goods to July 9, following discussions with Ursula von der Leyen, President of the European Commission. The tariffs were originally slated to go into effect on June 1.
“Although this delay has provided short-term relief and lifted futures, broader concerns surrounding global trade dynamics and economic indicators remain top-of-mind for investors,” commented Naeem Aslam, Chief Investment Officer at Zaye Capital Markets, in a note to clients.
The market’s rebound comes after a volatile week in which all three major indices — the Dow Jones, S&P 500, and Nasdaq Composite — recorded declines of more than 2%. Investor anxiety was fueled by tariff threats and potential implications for major U.S. companies, including Apple.
U.S. markets were closed Monday in observance of Memorial Day, giving traders time to digest developments and prepare for a data-heavy week.
Key Economic Indicators in Focus
On Tuesday, investors are closely watching several critical economic reports, including updates on:
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Durable goods orders
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Housing market activity
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Consumer confidence levels
Additionally, remarks from Minneapolis Fed President Neel Kashkari and New York Fed President John Williams are expected to provide further insight into the Federal Reserve’s monetary policy outlook.
Corporate Earnings in the Spotlight
Earnings season is nearing its end, but key reports are still on the horizon. Okta is scheduled to report after Tuesday’s market close, followed by Nvidia, Macy’s, and Costco later this week.
According to FactSet, over 95% of S&P 500 companies have now released their quarterly earnings, with nearly 78% surpassing Wall Street expectations — a strong performance that has helped to counterbalance recent market uncertainty.
Summary:
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Stock futures jump as Trump delays EU tariff deadline.
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Dow futures gain 430 points; S&P 500 and Nasdaq futures also rise.
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Market rebound follows last week’s losses tied to trade fears.
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Investors eye key economic data and Fed commentary.
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Earnings reports from major companies remain in focus.
