U.S. stock futures jumped this morning, thanks to President Donald Trump’s news this weekend that he’ll be extending his tariff deadline with the European Union. Investors cheered the news, pushing up market expectations. Step aside, Apple Dow futures rallied more than 400 points, for a greater than 1% gain. Major indexes had a difficult week, with the Dow Jones Industrial Average and Nasdaq Composite each down roughly 2.5%. This drop was due to escalation of trade tensions and fears about Apple Inc.
As of Monday, more than 95% of S&P 500 companies have reported this earnings season. Even more impressively, about 78% of them beat analyst expectations, as per FactSet data. That said, the U.S. stock market was closed on Monday in observance of Memorial Day, leaving investors chomping at the bit for news.
As a reminder, last week the Dow dove more than 2%. That decline was right on the heels of Trump announcing a new 50% import tax on all imported EU goods, beginning June 1. Ursula von der Leyen, President of the European Commission, had asked for one. In further response, Trump extended the deadline to July 9. That announcement was short-lived in its impact, but it gave a boost to market sentiment.
S&P 500 futures jumped 1.2%, while Nasdaq 100 futures climbed 1.3% on the tariff extension announcement. Futures indicate a strong opening in the green today. The three biggest indexes—Dow, S&P 500 and Nasdaq Composite—have historically ended a negative week, crushed by a wider set of financial fears for soaring inflation.
Investors are now turning their attention to upcoming economic data scheduled for release on Tuesday, which includes figures on durable goods, housing, and consumer confidence. These indicators will be very important to influence market sentiment going into the future.
“While the delay in EU tariffs has provided a short-term boost to futures markets, underlying concerns about trade relations and upcoming economic indicators continue to weigh on investor sentiment.” – Naeem Aslam
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