Stock Market Today: Dow, S&P 500 & Nasdaq Rally as Trump Delays EU Tariffs

Tesla (TSLA) shares surged 6% on Tuesday afternoon after CEO Elon Musk revealed he’s ramping up his personal commitment to the electric vehicle giant and his other ventures.

“Back to spending 24/7 at work and sleeping in conference/server/factory rooms,” Musk posted on X, signaling renewed hands-on leadership as Tesla prepares for key technology rollouts and a Starship launch next week. He also emphasized renewed focus on Tesla, X (formerly Twitter), and xAI.

The rally also followed President Trump’s decision to delay a planned 50% tariff on European Union imports, easing investor fears of an immediate trade war. Tesla stock benefited from the broader market’s positive reaction to the news.

However, Tesla’s market momentum came despite troubling sales data from Europe. Registrations for Tesla EVs in the region plunged 49% year-over-year in April to 14,228, even as total EV registrations rose 34.1%, according to industry data. Tesla's shrinking footprint highlights rising competition from both European and Chinese automakers.

Investors are watching the bond market closely after long-term U.S. Treasury yields spiked last week, triggered by renewed concerns over the nation’s fiscal health and President Trump’s sweeping tax proposal.

The 30-year Treasury yield (^TYX) briefly hit 5.15%, the highest level since 2007, before easing slightly Tuesday as reports suggested Japan may ease its bond issuance. Still, fears persist over what Trump’s tax plan—expected to add $4 trillion to the deficit—could mean for inflation, debt, and future rate expectations.

Economists say the focus is shifting away from the Fed and toward Washington's fiscal choices, with the bond market sending early warning signals.

Trump Media & Technology Group (DJT) is making headlines after revealing plans to raise $2.5 billion to establish a significant Bitcoin reserve. The funding is supported by around 50 institutional investors and will consist of $1.5 billion in common stock and $1 billion in convertible notes. The deal is expected to finalize around May 29.

Once closed, Trump Media will add Bitcoin to its corporate holdings, which already include $759 million in cash and equivalents from Q1 2025. The move positions the company as a major corporate investor in digital assets, signaling a long-term crypto strategy. Read the Full Story Here

Consumer confidence made a strong comeback in May, ending five straight months of declines, as Americans grew more optimistic about the economy and job prospects.

The Conference Board’s Consumer Confidence Index rose to 98, up from 85.7 in April — and well above the 87.1economists had expected. The Expectations Index, which tracks how people feel about the next six months, climbed to 72.8, a big jump from April’s 55.4, which was a 13-year low.

This rebound comes as President Trump delayed a major round of tariffs on Chinese goods — a move that likely boosted consumer sentiment ahead of the May 19 survey deadline. However, ongoing trade tension with the EU and companies like Apple wasn't reflected in this month’s results.

“Confidence was already rising before the US-China deal on May 12, but it picked up more afterward,” said Stephanie Guichard, a senior economist at the Conference Board. She noted that Americans were feeling less negative about the economy, more hopeful about jobs, and more positive about future income.

The strong May reading shows that easing trade worries and signs of economic stability are helping people feel better about what’s ahead.

US stocks surged Tuesday, marking a strong start to the shortened holiday week as optimism around a potential EU-US trade agreement lifted investor sentiment.

The Dow Jones Industrial Average climbed over 400 points, up 1%, while the S&P 500 gained 1.2%. Leading the charge was the Nasdaq Composite, which rallied 1.6%, driven by strength in tech stocks.

The positive momentum followed President Trump's decision to delay a planned 50% tariff hike on EU imports until July 9, fueling hopes for fast-tracked negotiations and a de-escalation in trade tensions. Investors welcomed the development as a sign of possible relief from recent geopolitical and economic uncertainties.

Tesla’s (NASDAQ: TSLA) vehicle sales in Europe dropped sharply by 49% in April, continuing a four-month decline even as overall electric vehicle demand rose across the continent, according to Reuters.

The slump comes amid growing public criticism of CEO Elon Musk’s political stances, weak interest in the revamped Model Y, and mounting competition from local European and Chinese EV brands. Tesla’s market share in the region dropped to 0.7% last month, down from 1.3% a year earlier, based on data from the European Automobile Manufacturers Association (ACEA).

Despite the negative sales figures, Tesla stock surged. Shares were up $17.34, or +5.11%, trading at $356.68 on the Nasdaq as markets opened, reflecting investor optimism tied to broader U.S. market gains.