Wall Street’s roller-coaster ride has come to an end, at least for now. The S&P 500 jumped 2% on Tuesday as President Donald Trump announced a delay in his tariffs on the European Union. This move has given investors new hope that the US and EU can reach a trade deal, which could prevent a recession.
The Dow Jones Industrial Average rose 740 points, or 1.8%, while the Nasdaq composite gained 2.5%. These gains more than recovered losses from last Friday’s drop after Trump announced tariffs on France, Germany, and other European countries.
Analysts say that the delay gives them confidence that policymakers will take action to address economic constraints. “We focus on actions over words,” said Jean Boivin of BlackRock Investment Institute. “As economic constraints spur policy rollbacks.”
Despite this optimism, caution remains on Wall Street. Uncertainty caused by on-again-off-again tariffs could still damage the economy by pushing households and businesses to freeze their spending and investments.
However, a recent survey found that confidence among US consumers improved more than expected in May. The Conference Board reported that consumer confidence increased sharply, although it remains below the level typically signaling a recession ahead.
Nvidia led the gains with a 3.2% rise, driven by its profit report coming on Wednesday. Informatica also rose after Salesforce announced an all-stock deal to buy it.
Source: https://apnews.com/article/stocks-markets-eu-tariffs-japan-6c2c99748c4fd0c2b30ece2df981cd67