U.S. stock index futures surged Monday evening, buoyed by President Donald Trump’s decision to delay his proposed 50% tariffs on European Union imports until July. The move provided a reprieve for investors rattled by trade tensions late last week.
Trading was muted due to the Memorial Day holiday, but futures signaled a rebound following Friday’s sharp losses.
- S&P 500 Futures climbed 1.1% to 5,879.25 points.
- Nasdaq 100 Futures rose 1.3% to 21,236.50 points.
- Dow Jones Futures advanced nearly 1% to 42,069.0 points.
Trump’s announcement followed a call with EU President Ursula von der Leyen, during which both sides pledged to advance trade talks. Von der Leyen indicated optimism about improved U.S.-EU relations, offering some comfort to markets.
However, the market remains cautious amid Trump’s threats to impose tariffs on major tech players like Apple Inc. (NASDAQ: AAPL) unless domestic manufacturing increases. Apple’s stock slid 3% on Friday as concerns mounted.
Key Tariff Deadline Set for July 9
The July 9 deadline looms large as it coincides with the potential start of Trump’s “reciprocal” tariffs. Market participants are watching closely to see whether trade partners will secure agreements with Washington before the deadline.
- Friday’s Market Recap:
- S&P 500 fell 0.7% to 5,802.82 points.
- NASDAQ Composite dropped 1% to 18,737.21 points.
- Dow Jones slipped 0.6% to 41,603.07 points.
This week’s market sentiment also hinges on the trajectory of trade talks and potential agreements to avert additional tariffs.
Nvidia Earnings in Focus Amid AI Boom
Investor attention is turning to Nvidia Corporation (NASDAQ: NVDA), set to release its fiscal Q1 earnings on Wednesday. As a key player in the AI sector, Nvidia’s results are expected to offer insights into global AI demand and the company’s resilience in the face of tougher U.S. export controls to China.
Key factors to watch:
- Wall Street’s AI hyperscalers—Nvidia’s biggest customers—have maintained robust spending on AI development.
- Despite a global chip demand boom, export controls have limited Nvidia’s ability to sell to China, a significant market.
- Nvidia’s valuation has surged over the past two years, driven by its strong AI positioning.
Investors will be watching whether Nvidia can deliver “bumper earnings” as expected and how the company navigates its China challenges in the months ahead.