S&P 500 Futures Heading to All-Time Highs Fast on Trump’s EU Tariff Delay

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After a temporary decline, the S&P 500 is now rising as a result of a resurgence of optimism in the commodities and equity markets due to a reduction in global trade tensions.

Trade Tensions Ease, Markets React Positively

Following several weeks of solid gains, the S&P 500 saw a slight pullback last week, with futures closing down 1.70%. This dip came in the wake of renewed trade tensions sparked by President Donald Trump’s proposal of a 50% tariff on European Union goods, set to take effect June 1, alongside threats to impose a 25% levy on iPhones assembled outside the U.S. These developments weighed heavily on the index and on Apple’s share price, both of which declined.

However, market sentiment has since improved markedly, aided by the White House’s decision to postpone the proposed EU tariffs until July 9. Investors welcomed the delay as a cooling of hostilities and a step back from trade escalation, prompting renewed buying interest.

Renewed Risk Appetite Lifts Stocks and Commodities

The broader market environment has shifted positively. Risk appetite has returned on the back of lower trade barriers—not just with the EU, but also with China. A revised trade agreement has seen tariffs on Chinese imports to the U.S. drop to 30%, while Chinese duties on U.S. exports have been trimmed to 10%. This development triggered a “risk-on” mood across global markets.

S&P 500 Chart Weekly – The 50 SMA Has Turned Into Support

The E-mini S&P 500 Index Futures responded with a strong session, rising to 5,879.00 on the day, up 62 points. Major indices, including the Dow Jones Industrial Average and the Nasdaq Composite, also posted notable gains. Cryptocurrencies, often sensitive to shifts in global risk sentiment, saw a boost as well.

In the commodities space, oil prices climbed higher on expectations that lighter trade restrictions will support global economic growth and, in turn, fuel demand.

Technical Picture: S&P 500 Eyes Full Recovery

From a technical perspective, the S&P 500 is showing renewed strength. The index had previously pulled back from its February highs, entering a consolidation phase through April. This pause saw prices stall beneath the 50-week simple moving average (SMA), a crucial resistance level that capped gains last week.

Now, with a decisive move above both the 20-day and 50-day SMAs on the weekly chart, the index has re-established its bullish posture. This breakout enhances the outlook for a continued rally, with a potential push toward retracing the entire February slump.

Outlook: Sentiment Turns Upbeat as Trade Headwinds Recede

As global trade fears temporarily subside and key technical levels are reclaimed, the S&P 500 appears poised for further upside. Market participants are watching closely to see if this rally will hold and potentially extend into new highs, particularly as tariff uncertainty has diminished—for now.

With major indices, commodities, and risk assets all reflecting renewed confidence, the week has opened on a strong note. If upcoming economic data confirms this momentum, a sustained rally may be in the cards.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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