Wall Street Rises After Trump Postpones Tariffs Against the EU
Nvidia, the semiconductor powerhouse and the third-most valuable company in the U.S. market, rose 3.21%.
Quick overview
- U.S. stock indices closed sharply higher, with the Dow rising 1.78% and the S&P 500 gaining 2.05%.
- The rally was driven by President Trump's decision to postpone proposed tariffs on the European Union.
- Nvidia's stock rose 3.21%, contributing to the tech sector's positive performance amid the market rally.
- Despite the market gains, a significant drop in durable goods orders raises concerns about the U.S. economic outlook.
The three major U.S. stock indices closed sharply higher on Tuesday, bouncing back after a long holiday weekend. The rally was fueled by news that U.S. President Donald Trump has postponed his proposed tariffs on the European Union.
The Dow Jones Industrial Average, which tracks 30 major U.S. companies, rose 1.78% to 42,343.65 points. The S&P 500, which includes the largest U.S. companies by market value, gained 2.05% to 5,921.54, while the Nasdaq Composite jumped 2.47% to 19,199.16.
Trump announced on Sunday that the tariff deadline would be pushed back to July 9. On Tuesday, he welcomed the EU’s willingness to engage in trade talks with Washington but warned that he expects tangible progress.
Markets reacted positively to hopes of a breakthrough in U.S.-EU trade negotiations, helping extend the recent bullish trend. Attention is now shifting to Nvidia’s upcoming earnings report, with the chipmaker playing an outsized role in the rally.
Nvidia Lifts Tech Sector
Nvidia, the semiconductor powerhouse and the third-most valuable company in the U.S. market, rose 3.21% — the second-best performance among the “Magnificent Seven” tech giants, trailing only Tesla, which surged 6.94%.
Durable Goods Orders Drop Sharply
Despite the optimism in equities, fresh data highlighted cracks in the U.S. economic outlook. Orders for durable goods — manufactured products expected to last at least three years — fell 6.3% in April, following a revised 7.6% gain in March, according to the U.S. Census Bureau.
The sharp drop adds to concerns over economic volatility and underscores the market’s sensitivity to political developments, particularly Trump’s unpredictable trade policy. While his decision to postpone tariffs offered short-term relief, it also reinforced investor uncertainty surrounding the U.S. administration’s long-term economic strategy.
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