Stock prices in the United States ended the day with strong gains, with the Dow Jones Industrial Average rising by more than 700 points.
The increase came after investors welcomed the decision to delay a planned 50% tariff on goods from the European Union, as well as fresh economic data showing that consumers are becoming more optimistic.
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President Donald Trump, after receiving a request from European Commission President Ursula von der Leyen, agreed to push back the tariff deadline from June 1 to July 9. This delay will give both sides extra time to make progress in their trade discussions. The European Union also promised to speed up talks with the United States.
Market Performance and Investor Sentiment
The Dow climbed by 1.78 percent, equal to 740.58 points, closing at 42,343.65. The S&P 500 index gained 2.05 percent, or 118.72 points, finishing at 5,921.54.
The Nasdaq, focused heavily on technology companies, jumped by 2.47 percent, adding 461.96 points to reach 19,199.16. Meanwhile, the 10-year Treasury yield dropped slightly to 4.448 percent.
The market had dipped on Friday due to concerns about the planned tariffs, so investors welcomed the president’s decision to hold off. Many economists have warned that aggressive tariffs could raise prices and drag down economic activity, increasing the chance of a recession in the United States.
Chris Larkin, a senior executive at E*TRADE from Morgan Stanley, mentioned that while the tariff delay helped spark today’s rally, the next few days could be shaped by other important events.
These include company earnings, inflation updates, and Senate discussions on proposed tax and spending laws, which could influence how markets end the month.
A report on the PCE price index, a data point closely watched by the Federal Reserve to track inflation, is expected to be released at 8:30 a.m. on May 30.
Nvidia Set to Report Earnings After Other Tech Leaders
Chipmaker Nvidia is expected to announce its quarterly results after trading ends on Wednesday. This report will complete earnings updates from the seven most influential technology firms often grouped as the “Magnificent Seven.” The other six companies are Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Tesla.
So far, over 95 percent of companies in the S&P 500 have shared their earnings for the season. Almost 78 percent of those reports have gone above what analysts were predicting, according to research from FactSet.
Still, experts have shown concern about how many firms are uncertain about the future, especially when it comes to tariffs and consumer spending habits.
According to The Wall Street Journal, 2,136 publicly listed U.S. companies have discussed tariffs during earnings calls up to last Thursday. That number is the highest recorded in quarterly figures since 2016.
