Stocks Rocket on Tariff Delay Rally
Stocks rallied on Tuesday after President Donald Trump said over the holiday weekend that he agreed to delay tariffs of 50% on the European Union.
The Dow Jones Industrials sprang 740.58 points, or 1.8%, to 42,343.65.
The S&P 500 bounced 118.72 points, or 2.1%, to 5,921.54
The NASDAQ Composite popped 461.96 points, or 2.5%, to 19,199.16, as technology names like Tesla saw outsized gains.
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.
U.S. consumer confidence data released Tuesday came in stronger than expected for May on hopes of trade agreements.
Tesla shares popped 5% after CEO Elon Musk said he was shifting his focus away from politics and back into his companies. Other tech-related names were also higher, including Nvidia, AMD, Apple and Microsoft.
Outside of tech, U.S. Steel shares advanced more than 2% after sources familiar told the media that Japan’s Nippon Steel is expected to close its acquisition for $55 per share.
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
Prices for the 10-year Treasury were higher to open a short week Tuesday, lowering yields to 4.44% from Friday’s 4.51%. Treasury prices and yields move in opposite directions.
Oil prices retreated 58 cents to $60.95 U.S. a barrel.
Prices for gold fell $60.20 to $3,305.60.
