Key Points
- U.S. stock futures rose after Trump delayed the EU tariff decision until July 9. S&P 500, Nasdaq 100, and Dow Jones futures climbed 1.1%, 1.3%, and 1%, respectively.
- Trump plans to begin trade negotiations with the EU following talks with Ursula von der Leyen.
- Investors remain cautious amid tariff threats on Apple and other smartphone makers.
- Nvidia’s upcoming earnings will offer critical insight into global AI demand.
U.S. stock index futures climbed sharply on Monday evening after former President Donald Trump announced a delay in imposing steep trade tariffs on the European Union, easing investor concerns and setting a more optimistic tone for the week.
The rise came despite low trading volumes due to the Memorial Day holiday. Futures suggested a rebound following Friday’s sell-off on Wall Street, which was fueled by heightened trade tensions and tech sector pressure.
By 7:11 PM ET, S&P 500 futures were up 1.1% at 5,879.25, while Nasdaq 100 futures rose 1.3% to 21,236.50. Dow Jones futures also advanced nearly 1% to 42,069.0 points.
The positive movement came after Trump stated on Sunday that he had postponed his proposed 50% tariffs on EU goods until July 9. The announcement followed a constructive conversation with EU Commission President Ursula von der Leyen, during which both sides agreed to resume formal trade negotiations. Markets had been rattled on Friday by Trump’s earlier tariff threats, making Monday’s delay a welcome relief.
However, concerns persist, particularly over Trump’s threats to impose tariffs on tech giant Apple Inc. and other smartphone imports unless they increase domestic manufacturing. Apple’s shares dropped 3% last Friday following these remarks.
The July 9 deadline remains pivotal, aligning with the proposed implementation date of Trump’s broader “reciprocal” tariffs. Markets are closely watching whether the U.S. and its trading partners can reach trade agreements before then.
Investor focus is also shifting to Nvidia Corporation’s earnings report, scheduled for release on Wednesday. As a dominant player in the AI space, Nvidia’s performance is widely viewed as a barometer for the tech sector and overall AI demand. The company is expected to post strong results driven by continued heavy spending from major AI clients, also known as hyperscalers.
Attention will also be on Nvidia’s strategy for addressing tightened U.S. export restrictions that have hindered its access to the Chinese market.
