Strong Rebound in Dow Jones (DJIA) as Predicted – Optimism Returns on US-EU Negotiations
Strong gains were seen in US equities markets as a result of a brief halt in impending US tariffs on European goods, with Dow Jones rising..
Quick overview
- US equity markets surged following President Trump's temporary delay on tariffs against the European Union, with the Dow Jones rising 1.8%.
- The NASDAQ led the rally with a gain of over 2%, driven by strong performance in tech and AI-related stocks.
- Individual stocks like Tesla and major airlines saw significant increases, reflecting positive investor sentiment and expectations for a robust summer travel season.
- Overall, the market's bullish momentum indicates a renewed risk appetite among investors as they reposition ahead of upcoming earnings reports.
Strong gains were seen in US equities markets as a result of a brief halt in impending US tariffs on European goods, with the Dow Jones rising 1.8%.
Markets Surge on Tariff Reprieve and Risk Appetite
US stocks began the holiday-shortened week with sharp gains as President Trump granted a temporary delay on tariffs targeting the European Union, boosting investor sentiment and reigniting risk-on appetite.
After previously warning of steep trade penalties—including 25% tariffs on Apple products manufactured outside the US and 50% tariffs on a wide array of EU goods—Trump softened his stance over the weekend. Following conversations with the President of the European Commission, the White House agreed to postpone the tariff enforcement until July 9, offering global markets a sigh of relief.
The announcement was formally priced in on Tuesday, as US markets remained closed on Monday for Memorial Day. Traders took the opportunity to reposition, resulting in a bullish open across major indices.
Index Performance Overview
The NASDAQ led the rally with a robust gain of over 2%, benefiting from strong buying in tech and AI-linked names. The S&P 500 also advanced more than 2%, helping it cross into positive territory for the year with a year-to-date gain of 0.68%. Meanwhile, the Dow Jones Industrial Average lagged slightly but still posted solid gains, though it remains down 0.47% for 2025 and the 20 SMA (gray) still stands as resistance on the weekly chart.
Dow Jones Chart Weekly – Buyers Still Have to Push Above the 20 SMA 
The NASDAQ Composite, which has been under pressure earlier in the year, managed to close the gap and is now down just 0.58% year-to-date, showing signs of stabilization as uncertainty around trade policy eases.
U.S. Stock Market Closing Snapshot – Strong Rally Across Majors
- Dow Jones Industrial Average
▸ Gained +740.58 points (+1.78%) to close at 42,343.65
▸ Broad-based buying lifted the index to its best one-day performance in weeks. - S&P 500 Index
▸ Rose +118.72 points (+2.05%) to finish at 5,921.54
▸ Growth and tech sectors led gains, with all 11 sectors ending in the green. - Nasdaq Composite
▸ Surged +461.96 points (+2.47%) to settle at 19,199.16
▸ Big tech and momentum names drove the index to a fresh record close.
Stock Highlights: Tech and Airlines Jump
Among individual movers, Tesla surged by 6.9%, continuing its recent momentum tied to AI projects and delivery optimism. The airline sector also saw strong buying:
Southwest Airlines jumped 5.53% as it implemented its first luggage fee hike, signaling efforts to improve margins.
American Airlines rose 4.02%, while United Airlines climbed 4.73%, with the broader travel sector gaining on hopes of a robust summer travel season and easing geopolitical headwinds.
Notable Stock Movers
- Tesla (TSLA):
▸ Jumped +6.90% to $362.75
▸ Investors reacted positively to recent delivery expectations and AI-related initiatives. - GameStop (GME):
▸ Advanced +6.02% to $35.02
▸ Momentum continued following technical breakouts and crypto-linked enthusiasm. - Stellantis NV (STLA):
▸ Up +5.92% to $10.48
▸ Benefited from favorable EV policy developments and EU manufacturing outlook. - Block Inc. (XYZ):
▸ Rose +5.81% to $62.15
▸ Positive sentiment around payments growth and crypto transactions. - Southwest Airlines (LUV):
▸ Climbed +5.53% to $32.66
▸ Airline sector rallied on hopes of a strong summer travel season. - Arm Holdings (ARM):
▸ Gained +5.33% to $133.96
▸ Continued bullish sentiment around AI chip architecture and licensing revenues. - Shopify Inc. (SHOP):
▸ Increased +5.15% to $106.74
▸ E-commerce optimism and retail strength supported the move higher.
Big Tech Watch – Pre-Nvidia Earnings Momentum
- Nvidia (NVDA):
▸ Gained +3.21%, with traders positioning ahead of earnings tomorrow.
▸ High expectations for another strong quarter in AI chip dominance. - Microsoft (MSFT): +2.30%
- Meta Platforms (META): +2.40%
- Apple (AAPL): +2.50%
- Alphabet (GOOGL): +2.60%
- Amazon (AMZN): +2.50%
▸ All major tech names participated in the rally, adding weight to the Nasdaq’s breakout.
Wall Street roared higher in a broad rally driven by tech optimism, tech enthusiasm, and pre-earnings momentum in semiconductors. The sharp uptick in equities signals a return of risk appetite, with institutional rotation evident across major indices.
The Nasdaq led the charge, boosted by heavyweight techs and Tesla’s surge, while chip stocks are poised to dictate the next leg after Nvidia’s results. Investors are closely watching whether this momentum can carry into month-end, as positioning shifts toward growth-heavy sectors and innovation themes.
Dow Jones Live Chart
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