The major U.S. index futures on the Dow Jones, S&P and Nasdaq are currently pointing to a sharply higher open on Tuesday, with stocks likely to regain ground following the steep drop seen last week.
The upward momentum on Wall Street comes after President Donald Trump announced he is delaying a threatened 50 percent tariff on imports from the European Union.
“I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension on the June 1st deadline on the 50% Tariff with respect to Trade and the European Union,” Trump said in a post on Truth Social on Sunday.
“I agreed to the extension – July 9, 2025 – It was my privilege to do so,” he added. “The Commission President said that talks will begin rapidly.”
The move by Trump comes as analysts previously suggested the threatened tariff on the EU was just a negotiating tactic and not where the eventual rate will wind up.
Meanwhile, traders are also looking ahead to earnings news from Nvidia (NASDAQ:NVDA), with the AI daring scheduled to release its fiscal first quarter results after the close of trading on Wednesday.
Stocks moved sharply lower in early trading on Friday but regained some ground over the course of the session. While the major averages climbed well off their worst levels of the day, they still closed firmly in negative territory.
The tech-heavy Nasdaq tumbled as much as 1.7 percent early in the session before ending the day down 188.53 points or 1.0 percent at 18,737.21. The S&P 500 also slid 39.19 points or 0.7 percent to 5,802.82 and the Dow fell 256.02 points or 0.6 percent at 41,603.07.
For the week, the S&P 500 gave up 2.6 percent, while the Nasdaq and the Dow both plunged by 2.5 percent.
The initial slump on Wall Street came after Trump threatened to impose 50 percent tariffs on imports from the European Union beginning June 1st.
Trump claimed in a post on Truth Social that the EU has “been very difficult to deal with” and said trade talks with the bloc are “going nowhere!”
In a separate Truth Social, Trump also threatened to impose a 25 percent tariff on Apple (NASDAQ:AAPL) iPhones that are not manufactured in the U.S. Shares of Apple tumbled by 3.0 percent following the news.
Trump’s threats led to renewed to trade concerns, which had waned considerably in recent weeks after the U.S. reached trade deals with the U.K. and China.
On the U.S. economic front, the Commerce Department released a report showing new home sales in the U.S. in the month of April spiked compared to a significantly downwardly revised level in March.
The report said new home sales soared by 10.9 percent to an annual rate of 743,000 in April after jumping by 2.6 percent to a downwardly revised rate of 670,000 in March.
Economists had expected new home sales to tumble by 4.4 percent to a rate of 692,000 from the 724,000 originally reported for the previous month.
Semiconductor stocks turned in some of the market’s worst performances on the day, dragging the Philadelphia Semiconductor Index down by 1.5 percent.
Notable weakness was also visible among networking stocks, as reflected by the 1.0 percent loss posted by the NYSE Arca Networking Index.
Retail, computer hardware and software stocks also moved to the downside, while gold stocks moved sharply higher along with the price of the precious metal.
Dow Jones, S&P, Nasdaq, Trump’s Delay Of EU Tariffs Likely To Spark Rally On Wall Street, Nvidia Earnings, Apple Tariffs
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