Dow Soars Over 650 Points on EU Tariff Delay, Strong Consumer Confidence
Dow jumps 652 points as Trump delays EU tariffs to July 9, boosted by strong US consumer confidence and gains in tech and industrial stocks.
U.S. stocks rallied sharply on Tuesday as investors responded positively to President Donald Trump’s announcement that he would delay proposed tariffs on the European Union and as fresh data showed stronger-than-expected consumer confidence.
The Dow Jones Industrial Average surged 652 points, or 1.6%, marking a sharp turnaround after last week’s losses. The S&P 500 jumped 1.9%, while the Nasdaq Composite soared 2.3%, led by gains in major technology stocks.
The market bounce came after Trump, speaking over the Memorial Day weekend, confirmed he would postpone a planned 50% import tariff on EU goods until July 9. The delay follows a request from European Commission President Ursula von der Leyen, and provides breathing room amid escalating trade tensions. Trump had initially proposed the tariffs would take effect on June 1.
Appearing on CNBC’s Squawk Box, National Economic Council Director Kevin Hassett suggested more trade agreements could be in the works as early as this week. Meanwhile, fresh consumer confidence figures for May came in better than expected, bolstered by optimism over international trade developments.
Tech stocks led the charge, with Tesla shares rising 5% after CEO Elon Musk said he would be stepping back from political involvement to refocus on his companies. Other tech heavyweights like Nvidia, AMD, Apple, and Microsoft also traded higher.
In the industrial sector, U.S. Steel gained over 2% after sources told CNBC that Japan’s Nippon Steel is on track to finalize its acquisition of the company at $55 per share.
Tuesday's market rally follows a disappointing week where all three major indices lost more than 2% amid renewed tariff threats. U.S. markets were closed Monday in observance of Memorial Day.
Commenting on the sharp rebound, Dann Ryan, managing partner at Sincerus Advisory, said, “It seems like the long holiday weekend only served to build up momentum for today’s whipsaw. The trade tensions that had flared have already been extinguished, yet again.”
Looking ahead, investor attention will turn to upcoming corporate earnings. Okta reports after the bell Tuesday, with Nvidia, Macy’s, and Costco scheduled later in the week. So far, over 95% of S&P 500 companies have reported results for the current earnings season, with nearly 78% beating analyst expectations, according to FactSet.
