Dow gains 740 points as Trump delays EU tariffs, ending four-day losing streak amid strong consumer confidence and tech rally.
In Short:
Stocks surged after President Trump delayed tariffs on EU imports, ending a four-day slump. Tech stocks rose sharply, with strong consumer confidence data further boosting the market.
Stocks rebounded significantly on Tuesday, with the Dow Jones Industrial Average increasing by 740.58 points, or 1.78%, ending the day at 42,343.65.
The S&P 500 also rose by 2.05% to 5,921.54, while the Nasdaq Composite saw a notable increase of 2.47%, reaching 19,199.16.
This rally ended a four-day losing streak for the major indices.
The market’s surge followed President Donald Trump’s announcement over the holiday weekend to delay a proposed 50% tariff on imports from the European Union.
Trump’s decision came after a request from Ursula von der Leyen, president of the European Commission, postponing the deadline to July 9.
U.S. consumer confidence data released on Tuesday exceeded expectations for May, contributing to the market’s positive movement amid hopes for impending trade agreements.
Tech stocks
Tech stocks, in particular, performed well, with Tesla shares jumping about 7% after CEO Elon Musk indicated a renewed focus on company operations rather than political issues.
Other tech companies like Nvidia, AMD, Apple, and Microsoft also saw gains.
In addition to tech, U.S. Steel shares climbed roughly 2% amid news of an impending acquisition by Japan’s Nippon Steel.
The trading week started strong after a closure on Monday for Memorial Day, with the majority of S&P 500 stocks showing gains.
Market observers will watch for upcoming earnings reports from Okta, Nvidia, Macy’s, and Costco.
Over 95% of S&P 500 companies have reported earnings this season, with nearly 78% exceeding analyst forecasts.
