US stocks surged Tuesday after President Donald Trump agreed to delay the 50%tariffs proposed for the European Union income.
This temporary suspension has eased concerns about the increase in trade wars of investors and opened a path of accelerated negotiations.
Dow Jones’ industrial average increased by 740 points, while S & P 500 increased 2.05%. Along with the stocks of NVIDIA, TESLA and Apple, the NASDAQ composite materials, which have a lot of technology, increased 2.46%.
After the Memorial Day vacation, the market got a positive signal. US President Donald Trump said that the first -time tariff increase on the weekend will be back to July 9, following the dialogue with the European Commission President Ursula Von Der Leyen.
The European Union agreed to promote trade discussions to avoid “mutual suffering of tariffs”, according to the EU Trade chief Maroš šefčovič.
Consumer trust rebound
Investors’ feelings were further granted by the rebound of consumer trust and rose in May after the reduction of five months. The extensive market rally on Tuesday was more than 90% of the S & P 500 components. Small stocks also increased by more than 2%.
The optimism has expanded to the debt market, and the US Treasury is obsessed and the yield is reduced. The 10 -year return dropped to 4.43%and the 30 -year return dropped to 4.94%. The dollar has been tightened and the global bond market has responded positively to the speculation that Japan will restore the issue of long -term bonds since its recent volatility.
Investors are now paying attention to economic data and imports of busy weeks. President Neel Kashkari, the Fed in the Fed, called for a stable interest rate due to the uncertainty of trade in the central bank.
Meanwhile, NVIDIA will report Quarterly results with OKTA, MACY ‘S and COSTCO.
Tuesday’s rally helped to reverse the loss last week, caused by Trump’s initial tariff threat. Analysts say that they have changed the market back and forth and kept them hopefully.