Wall Street Rallies as Trump Delays Tariffs on EU Goods

27 May at 10:12 am

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Wall Street Rallies as Trump Delays Tariffs on EU Goods/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. markets surged Tuesday after President Trump delayed EU tariffs. S&P 500 gained 1%, Nasdaq jumped 1.3%, and Dow rose nearly 300 points. Investors remain cautiously optimistic as global trade tensions simmer.

Traders Jonathan Mueller, right, and Michael Capolino work on the floor of the New York Stock Exchange, Wednesday, May 14, 2025. (AP Photo/Richard Drew)

Wall Street Rebound: Quick Looks

Trump’s Trade Shift: 50% EU tariffs delayed to July 9, sparking optimism.
Market Response: S&P 500 rose 1%, Nasdaq climbed 1.3%, Dow up 297 points.
Global Talks: EU negotiators express hope for a deal by mid-July.
Nvidia Surge: Up 1.8% ahead of Wednesday’s earnings; AI demand keeps momentum.
Deal Buzz: Salesforce to acquire Informatica in $8B all-stock agreement.
Tariff Jitters: Ongoing uncertainty may suppress consumer and business spending.
Bond Markets: U.S. Treasury yields dip slightly, easing pressure on equities.
Global Markets: European stocks advanced; Asian indexes mixed.

Deep Look: Wall Street Climbs After Trump Hits Pause on EU Tariffs

May 27, 2025

Wall Street kicked off Tuesday trading with strong gains as relief swept through markets following President Donald Trump’s decision to delay steep new tariffs on European Union imports. The S&P 500 rose 1% in early trading, while the Nasdaq jumped 1.3% and the Dow Jones Industrial Average climbed 297 points, or 0.7%.

This reversal comes just days after markets tumbled on Trump’s announcement of a 50% tariff on EU goods, scheduled to begin June 1. But on Sunday, the administration pushed that deadline to July 9, signaling openness to negotiations — a move that reassured investors fearing another full-blown trade war.

Trump’s Trade Turbulence

Trump’s shifting trade stance has put markets on a roller-coaster ride in recent months. Earlier this month, a similar pause in U.S.-China tariffs triggered a market surge. Investors are now hoping for a repeat with the EU — America’s largest trading partner outside of China.

Europe’s chief trade negotiator confirmed positive early talks, saying the EU was “fully committed” to a trade resolution before the new July deadline.

Tariffs and Economic Anxiety

Despite today’s upswing, analysts caution the volatility is far from over. Consumer sentiment has dipped as households and businesses alike express concern over inflation and uncertainty. On-again, off-again trade threats risk undermining business investment, slowing hiring, and dampening consumer confidence.

Surveys suggest growing anxiety over the direction of the economy, and some economists fear that prolonged trade uncertainty could edge the U.S. toward a recession.

Tech and Deals Driving Momentum

Among individual movers, Nvidia helped power the Nasdaq higher with a 1.8% rise ahead of its highly anticipated earnings report on Wednesday. The chipmaker is a bellwether for the AI sector and a dominant force among the “Magnificent Seven” tech stocks that continue to lead the market.

Salesforce made headlines with its $8 billion all-stock acquisition of cloud data company Informatica, pushing the latter’s shares up 5.6%, though Salesforce slipped 0.4%.

AutoZone, meanwhile, rose 0.8% despite mixed quarterly results. Its revenue outpaced expectations, though earnings fell short, partly due to foreign exchange headwinds exacerbated by the dollar’s volatility under the shadow of trade disputes.

Currency and Bond Markets React

The dollar’s movement continues to impact international businesses. CEO Phil Daniele of AutoZone noted that currency fluctuations have weighed on overseas operations. When the dollar strengthens, revenue earned in other currencies converts to fewer dollars, shrinking earnings.

In bond markets, the 10-year Treasury yield slipped to 4.48% from Friday’s 4.51%, easing pressure on stocks. This came as investor fears about rising U.S. debt cooled slightly, and concerns about bond demand in Japan also appeared to stabilize after outreach by its finance ministry.

International Markets Show Mixed Signals

While U.S. indexes surged, global markets posted mixed results. European benchmarks climbed in reaction to the EU tariff delay, but many Asian markets were more subdued, reflecting ongoing geopolitical and economic uncertainties.