Markets Surge as Trump Delays EU Tariffs; Investors Eye Nvidia Earnings, US Inflation Data

Equity markets advanced on Monday after U.S. President Donald Trump delayed the implementation of proposed tariffs on European Union imports, easing investor concerns over a potential escalation in trade tensions. The move supported a broad-based rally across global indices, with European shares and U.S. equity futures both recording gains.

The Stoxx Europe 600 index rose 0.9%, erasing losses sustained at the end of last week following Trump's threat of imposing 50% tariffs on EU goods. Futures tied to the S&P 500 and Nasdaq 100 were each up by more than 1% in early New York trading, buoyed by renewed optimism over trade negotiations.

President Trump announced on Sunday that the tariff deadline would be pushed back to July 9, extending the previous date of June 1, after a phone conversation with European Commission President Ursula von der Leyen. The delay allows time for continued dialogue, though uncertainties around trade policy remain.

Von der Leyen confirmed the conversation in a social media post, stating the EU was prepared to “advance talks swiftly and decisively,” but noted that a comprehensive agreement would “require time until July 9.”

Trade Policy Instability Continues to Challenge Markets

Trump’s decision follows a familiar sequence of sharp policy pronouncements followed by partial reversals—a pattern that has generated repeated swings in global financial markets.

“The stock market seems to dance to Trump’s tune: first a threat, then a pullback, followed by a rebound,” said Jochen Stanzl, chief market analyst at CMC Markets.

“This morning’s confirmation reinforces what many investors are calling the ‘Trump Pattern.’”

Some investors, however, signaled waning patience with repeated policy shifts.

“The rebounds that follow these selloffs are starting to lose strength,” said Frédéric Rozier, portfolio manager at Mirabaud France. “There is evidence of investor fatigue, and sentiment risks deteriorating if volatility persists.”

In addition to European imports, Trump’s Friday remarks included a threat to impose a 25% tariff on smartphones, targeting companies such as Apple Inc. and Samsung Electronics Co., unless they relocate production to the United States. The statement heightened concerns over a widening scope of protectionist measures affecting the technology sector.

Stock Movers in Focus

Among notable gainers, Thyssenkrupp AG rose over 7% following reports that its chief executive intends to reorganize the group into a holding company structure. The restructuring is aimed at cutting overhead costs and preparing for additional divestitures.

Volvo Car AB shares climbed as much as 4.9% after the Swedish automaker announced plans to reduce its global workforce by approximately 7% in a cost-saving initiative designed to preserve margins amid slowing global demand.

Currency, Commodities and Cryptocurrency Markets

Currency movements were relatively muted. The Bloomberg Dollar Spot Index was little changed but remained near its lowest level since July 2023. The euro gained 0.1% to $1.1377, while the British pound was up 0.1% at $1.3557. The Japanese yen fell 0.2% to 142.91 per dollar.

In the cryptocurrency space, Bitcoin increased 2.1% to $109,986.15, while Ether rose 1.8% to $2,569.03.

Gold prices fell 0.6% to $3,336.67 an ounce, and West Texas Intermediate crude was little changed in thin trading due to public holidays in the United Kingdom and the United States.

Dollar Positioning and Trade Sentiment

Speculative sentiment toward the dollar remains cautious. According to the U.S. Commodity Futures Trading Commission (CFTC), net short positions narrowed to $12.4 billion in the week ending May 20, down from $16.5 billionthe prior week. Traders are scaling back bearish positions, but a sustained reversal remains unlikely until greater clarity on monetary policy emerges.

Key Economic Events to Watch

Investor attention now turns to two major events later this week:

• Nvidia Corp. will report earnings on Wednesday, a release widely watched as a gauge of broader demand in the technology and artificial intelligence sectors. The chipmaker is expected to post strong results, but the sustainability of its performance amid global macroeconomic risks remains under review.

• On Friday, the U.S. personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation, is scheduled for release. The core reading (excluding food and energy) is projected to show a 0.1% monthly increase. The data could influence expectations for future interest rate moves.

Meanwhile, reports of increasing port congestion in northern Europe and other shipping hubs have raised fresh concerns over possible supply chain disruptions if tariff tensions escalate further. Shipping costs may face upward pressure in the coming weeks, according to logistics analysts.

Essential Market Data and Highlights

Equities:

• S&P 500 futures: +1.3% (as of 9:33 a.m. ET)

• Dow Jones futures: +1.1%

• Stoxx Europe 600: +0.9%

• MSCI World Index: +0.3%

Currencies:

• Euro: +0.1% to $1.1377

• British Pound: +0.1% to $1.3557

• Japanese Yen: -0.2% to 142.91 per USD

Cryptocurrencies:

• Bitcoin: +2.1% to $109,986

• Ether: +1.8% to $2,569

Bonds:

• Germany 10-year yield: 2.57% (unchanged)

• UK 10-year yield: -7 bps to 4.68%

Commodities:

• WTI Crude: Unchanged

• Spot Gold: -0.6% to $3,336.67

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