Stocks climbed sharply on Tuesday after President Donald Trump announced he would delay the planned 50% tariffs on the European Union. The move eased investor concerns and lifted Wall Street after last week’s losses.
Trump Delays EU Tariffs to July 9 After EU Request
President Trump said over the holiday weekend that the 50% tariff on EU goods, originally set for June 1, will now be postponed until July 9. This delay came at the request of Ursula von der Leyen, the President of the European Commission.
Trump referred to the delay as part of ongoing negotiations, while also highlighting his administration’s recent trade moves. The President has introduced several major tariffs over the past four months, which have created uncertainty in the markets.
Stocks Rally Across the Board After Trump Delays EU Tariffs
Following the announcement, the Dow Jones Industrial Average surged by 523 points, or 1.3%. The S&P 500 rose 1.6%, and the Nasdaq Composite gained 2%, led by technology stocks.
Investors saw the tariff delay as a sign that more trade deals may follow. National Economic Council Director Kevin Hassett told CNBC that he expects to “see a few more deals even this week.”
Consumer Confidence Jumps in May
Adding to the positive news, May consumer confidence data came in stronger than expected. The Conference Board’s index rose to 98, up from 86 last month, beating economist predictions.
Many believe this confidence boost reflects optimism around trade talks and the Trump delays EU tariffs decision.
Tech and Steel Stocks Lead the Market Gains
Tech stocks were among the biggest winners on Tuesday. Tesla gained 5% after CEO Elon Musk said he would turn his focus away from politics and back to running his companies. Other major tech names like Nvidia, AMD, Apple, and Microsoft also traded higher.
In the steel sector, U.S. Steel shares rose about 2% after reports that Japan’s Nippon Steel is set to finalize its $55-per-share acquisition of the company. Trump approved the deal last Friday, calling it a “partnership,” with plans for $14 billion in investments. U.S. Steel’s headquarters will remain in Pittsburgh, and an American CEO will lead the company.
VanEck Steel ETF Sees Best Month Since 2023
The VanEck Steel ETF (SLX) has gained 3.4% this month, pacing for its first positive month in three. The ETF was driven by gains in ATI, U.S. Steel, and Carpenter Technology, up 37%, 19%, and 17% respectively.
Trump Media Stock Falls After Bitcoin Plan
Meanwhile, Trump Media shares fell 10% after the company announced a plan to raise $2.5 billion to invest in bitcoin. The deal includes $1.5 billion in equity and $1 billion in convertible notes. CEO Devin Nunes called bitcoin the “apex instrument of financial freedom.”
Wingstop Stock Upgraded as Sales Look Promising
Wingstop shares have jumped more than 40% in the last month. Analysts at Truist upgraded the stock to “buy,” expecting stronger customer spending and new sales boosts from its “Smart Kitchen” rollout. They raised the stock’s price target from $274 to $400 per share.
The market reacted positively as Trump delays EU tariffs, with tech, steel, and restaurant stocks showing strong performance. Optimism around trade deals and strong consumer confidence data supported the market rebound. As investors await further earnings reports and global trade developments, Tuesday’s rally offers hope for a solid finish to the month of May.
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