Trump delays decision to impose 50% tariffs on the EU, boosting investor optimism in the market

Over the weekend, Trump decided to postpone the imposition of tariffs on the EU, and this news injected a strong dose of confidence into the market, quickly boosting investor sentiment.

Following this, the U.S. Memorial Day holiday ended on Monday, and the market reopened with continued positive signals. The U.S. stock market also welcomed a general rise on Tuesday.

This series of favorable measures not only alleviated investors' concerns about the escalation of the trade war but also generated more expectations for the easing of bilateral economic and trade relations.

In Tuesday's U.S. stock market, the Dow Jones Industrial Average rose nearly 740 points, while the S&P 500 and the Nasdaq Composite Index also increased by 2.05% and 2.47%, respectively. Technology stocks performed particularly well, with companies like Nvidia, Tesla, and Apple seeing varying degrees of price increases.

The decision to delay tariffs on the EU was made by President Trump after meeting with European Commission President Ursula von der Leyen. Over the weekend, Trump announced via social media that the previously planned 50% tariff increase, set to take effect on June 1, would be postponed to July 9, which relieved the market.

Additionally, the rebound in consumer confidence in May further boosted market optimism. After declining for five consecutive months, the rebound in consumer confidence is undoubtedly a positive signal. This optimistic sentiment also spread to the bond market, with U.S. Treasury prices rising and yields falling. The yield on the 10-year Treasury note dropped to 4.43%, while the yield on the 30-year Treasury note fell to 4.94%.

This week, investors' attention will shift to a series of economic data and earnings reports. On Wednesday, the earnings reports of companies such as Nvidia, Okta, Macy's, and Costco will become the focus of the market.

Meanwhile, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, called on the central bank to maintain stable interest rates amidst ongoing trade uncertainties.

Overall, Trump's decision to delay tariffs on the EU has brought stable optimism to the market. However, investors still need to remain vigilant and closely monitor various uncertainties in the global economic situation to respond to any potential market fluctuations.