Stock futures in the US saw a notable rise on Monday night after President Trump decided to delay a hefty 50% tariff on European Union (EU) products. Originally set for June, the tariffs will now be pushed to July, allowing more time for negotiations. This delay seems to have calmed markets, leading to positive movements in futures.

  • Dow Jones futures rose by 0.9%

  • S&P 500 futures jumped by 1.1%

  • Nasdaq 100 futures soared by 1.3%

The announcement came after European Commission President Ursula von der Leyen requested more time for talks. She expressed the EU's readiness to negotiate swiftly, which seemed to help boost investor confidence after weeks of uncertainty.

Trump’s Previous Tariff Announcement Set Markets Lower

Just days before, Trump had announced plans to slap a 50% tariff on EU imports, which had led to a significant drop in stock prices. With the markets closed for Memorial Day, there was a delay in reaction, but the general sentiment last week was negative, with all major stock indexes falling at least 2%. Concerns about tariffs and growing debt issues seemed to weigh on investor confidence.

Focus Shifts to Economic Data and Earnings Reports

Now, the attention shifts to a week filled with key economic data, including reports on durable goods, housing, and consumer confidence. Investors are also expecting Federal Reserve officials to keep interest rates steady, in line with previous guidance. Along with this, Trump’s tax bill is still under discussion after it narrowly passed in the US House last week.

Earnings Reports to Watch: Nvidia and More

This week is also packed with major earnings reports. Nvidia, which has been a hot topic lately, is set to release its results on Wednesday, drawing significant attention. Other companies like Okta, Macy’s, and Costco are also reporting their quarterly results.

In short, investors are staying on edge with ongoing global trade concerns, but there's hope that talks and earnings reports might bring some stability.