US stocks rally as Trump delays EU tariffs, boosts trade optimism

US shares broke on Tuesday after President Donald Trump agreed to delay a price proposed 50% on imports from the European Union.

This break attenuated the concerns of investors concerning an escalation of the trade war and paved the way For accelerated negotiations.

The industrial average of Dow Jones increased by almost 740 points while the S&P 500 increased 2.05%. The Nasdaq Composite, heavy with technology, jumped 2.46%, with actions from Nvidia, Tesla and Apple with strong gains.

The markets reopened after the Memorial Day holidays to a burst of positive signals. President Donald Trump said during the weekend that the price hike, initially scheduled for June 1, would be rejected Until July 9 following discussions with the president of the European Commission Ursula von der Leyen.

The European Union, in turn, has agreed to accelerate commercial discussions in the hope of avoiding “mutual tariff pain”, according to This head of the EU Maroš Šefčovič.

Consumer confidence bounce

The feeling of investors was also supported by a rebound in consumer confidence, increased In May after five months of decline. The large Tuesday market rally experienced more than 90% of S&P 500 components close. Small capitalization shares have also won, the Russell 2000 up more than 2%.

Optimism has extended to the bond market, where American Treasurys Rallied and the yields fell. The 10 -year yield dropped to 4.43%, while the 30 -year yield dropped to 4.94%. The dollar has strengthened and the global bond markets have reacted positively to speculations that Japan will issue long -term bond after the recent volatility.

Investors now turn attention to a week in charge of economic data and profits. Minneapolis president Fed Neel Kashkari called For the central bank to hold stable interest rates in the middle of continuous commercial uncertainty.

Meanwhile, Nvidia should report the quarterly results on Wednesday, with Okta, Macy’s and Costco also on the bridge.

Tuesday’s rally helped reverse last week’s defeats, which were launched by Trump’s initial price threats. Analysts say the back and forth has kept the volatile but hopeful markets.