Traders work on the floor of the New York Stock Exchange on May 21, 2025.
NYSE
Stock futures jumped Tuesday after President Donald Trump said over the holiday weekend that he agreed to delay tariffs of 50% on the European Union.
Dow Jones Industrial Average futures added 543 points, or 1.3%. S&P 500 futures climbed 1.5%, while Nasdaq 100 futures popped 1.7%.
Trump on Sunday said that he would push back the 50% levy deadline on the EU to July 9 following a request from Ursula von der Leyen, the president of the European Commission. That comes after Trump last week proposed an import tax of 50% on the EU beginning June 1.
Tuesday’s action follows a losing week on Wall Street. The Dow, S&P 500 and Nasdaq Composite all slid more than 2% as Trump’s calls for tariffs on the EU, along with Apple, concerned investors. The U.S. stock market was dark on Monday in recognition of Memorial Day.
“We’re still wary about chasing the SPX at these levels given complacency around two major areas of macro risk (tariffs and fiscal policy/yields) along with elevated equity valuations. Trump’s most bombastic tariff threats (including the ones Fri morning) won’t become a reality, but he’s still imposed substantial import taxes in just the last four months, and his administration is probably not finished,” wrote Adam Crisafulli of Vital Knowledge.
Traders this week will follow earnings from Okta due after the bell Tuesday, followed by companies such as Nvidia, Macy’s and Costco later in the week. More than 95% of S&P 500 companies have reported this earnings season and almost 78% have surpassed analyst expectations, according to FactSet.
Fed’s Kashkari calls for wait-and-see approach to rates as tariff impact unclear
Minneapolis Fed President Neel Kashkari called for a cautious approach to rates on Tuesday, noting that the economic impact of President Donald Trump’s tariffs remains unclear.
“The most recent shock, driven by tariffs and trade policy uncertainty, is different from the prior ones,” Kashkari said in a speech delivered in Japan. “A large increase in tariffs will increase inflation and decrease economic activity, at least in the short run. But given that monetary policy can either push both inflation and economic activity up or push them both down, tariffs present a special challenge for monetary policymakers.”
“We have to pick one: fight inflation or support economic activity?” he added.
— Fred Imbert
Tesla rises after Musk signals focus shift
Tesla shares rose more than 2% after CEO Elon Musk said his attention would shift back to his companies and away from politics.
In a post on X, Musk said: “I must be super focused on /xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.”
Investors had been worried Musk was focusing too much on politics and not enough on his companies, including Tesla.
Tesla YTD
— Fred Imbert
Asia-Pacific markets trade mixed as investors assess Trump’s tariff plans
Asia-Pacific markets traded mixed Tuesday as investors continued to assess the global trade climate after U.S. President Donald Trump deferred 50% tariffs on European Union imports.
Japan’s benchmark Nikkei 225 ended the day 0.51% higher at 37,724.11 while the broader Topix index rose 0.64% to 2,769.49.
In South Korea, the Kospi index fell 0.27% to close at 2,637.22, reversing course from its three-month high in Monday’s session, while the small-cap Kosdaq moved up 0.25% to 727.11 in choppy trade.
Mainland China’s CSI 300 index retreated 0.54% to close at 3,839.40, while Hong Kong’s Hang Seng Index gained 0.43% to end the day at 23,381.99. China’s industrial profits rose 1.4% in April, compared to 0.8% the month before.
Meanwhile, India’s benchmark Nifty 50 declined 0.6% while the BSE Sensex dropped 0.79% as at 1.46 p.m. Indian Standard Time.
Over in Australia, the S&P/ASX 200 advanced 0.56% to end the day at 8,407.6, signaling the benchmark’s third day in positive territory.
— Amala Balakrishner
Stocks come off negative week
The three major indexes are coming off a losing week.
The Dow and Nasdaq Composite both slid around 2.5% last week. The S&P 500 fell 2.6%.
The U.S. stock market was dark on Monday in observance of Memorial Day.
— Alex Harring
Stock futures pop
Stock futures traded higher shortly after 6 p.m. ET as investors cheered President Donald Trump’s announcement of the extension of the European Union’s tariff deadline.
Dow futures rallied more than 400 points, which equates to a gain above 1%. S&P 500 futures added 1.2%, while Nasdaq 100 futures jumped 1.3%.
The U.S. stock market was dark on Monday for Memorial Day.
— Alex Harring
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