The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all rose as stocks opened higher following the Memorial Day closure on Monday.
Stocks moved higher as investors reacted to the latest tariff news, with United States President Donald Trump delaying the recently threatened 50% tariff on the European Union. With the tariffs pushed to a potential implementation date of July 9, Asian and European stocks had traded higher. U.S. stock futures picked up momentum and surged.
The Dow opened more than 400 points higher on Tuesday, while the benchmark S&P 500 index jumped 1.1%. The Nasdaq Composite also gained, rising about 1.3% as stocks began the holiday-shortened week on a winning note.
The potential for a U.S.-EU deal will add to agreements between the United States and China and the U.S. and United Kingdom. Global stocks rose amid the two deals, the latter seeing the Dow surge over 1,000 points and the S&P 500 go on to notch a six-day winning streak.
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Trump’s announcement is buoying the market, while investors are also upbeat as Treasury yields slide. At the open, the 30-year Treasury yield dropped to 4.96%, while the 10-year yield hovered around 4.47%.
Meanwhile, the dollar showed strength as investors digested signals that Japan could soon scale back its bond sales. In addition to these macro developments, investors will be watching key economic data expected this week, along with commentary from Federal Reserve officials.
Investors will also focus on Trump’s tax bill, and upcoming earnings reports from Nvidia (NVDA) and others.
Jeremy Siegel, a professor at University of Pennsylvania’s Wharton School of Business, says despite the tariff policy and its impact so far, he is bullish on equities. Siegel, also the chief economist at Wisdom Tree, told CNBC in an interview:
“Tariffs are going to hopefully be no worse than 10% across the board and 30% with China. We can deal with that.”
As stocks rose, crypto notched some minor gains with Bitcoin (BTC) reclaiming $110k and Ethereum (ETH) rising 3% to $2,665. Bitcoin price surged to its all-time high above $111k last week.
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