The push-pull effect of tariffs and pauses is giving investors whiplash
Futures on the Dow Jones Industrial Average (DJIA), Nasdaq-100 (NDX), and S&P 500 (SPX) are all in rally mode this morning, after President Donald Trump announced the delay of 50% tariffs on the European Union (EU) until July 9, after a request from European Commission President Ursula von der Leyen. In response, bond yields are starting to cool, with the 10-year Treasury yield last seen at 4.46%.
Elsewhere, investors are brushing off a bigger-than-expected drop in durable goods orders in April to 6.3%, as they await earnings from giants including Nvidia (NVA) and Costco Wholesale (COST) later this week.
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5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2.1 million call contracts and over 1.3 million put contracts traded on Friday. The single-session equity put/call ratio fell to 0.60, while the 21-day moving average stayed at 0.59.
- Informatica Inc (NYSE:INFA) stock is up 6.3% ahead of the open, after the data management company agreed to be bought by Salesforce (CRM) in a deal valued at $8 billion. Shares have added more than 29% so far this quarter, and are looking to trim a 13% year-to-date deficit.
- Tesla Inc (NASDAQ:TSLA) stock is up 2.2% premarket, brushing off a 49% year-over-year sales drop in Europe for April after CEO Elon Musk shared on social media app X that he plans on giving more of his time to his companies. TSLA is down nearly 16% so far this year.
- PDD Holdings Inc (NASDAQ:PDD) missed first-quarter earnings and revenue estimates, with the Temu parent also noting it expects sales growth to slow due to tariffs. The company has already stopped sending products to the U.S. from China. PDD is 18.4% lower before the bell, which could nearly wipe away its 22.9% year-to-date lead.
- The end of May brings a wave of retail earnings, the Federal Reserve's meeting minutes, and more inflation data.
European Markets Rise on Delayed Tariffs
Asian markets were mixed Tuesday as investors weighed China’s April industrial profit data and digested U.S. President Donald Trump’s decision to defer a 50% tariff hike on European Union imports. Japan’s Nikkei rose 0.5%, while Hong Kong’s Hang Seng added 0.4%. On the downside, South Korea’s Kospi fell 0.3% and China’s Shanghai Composite shed 0.1%, despite a better-than-expected 1.4% rise in Chinese industrial profits.
Stocks in Europe are trending higher midday as traders welcome easing tariff fears and upbeat macro data. London’s FTSE 100 is up 0.8%, while Germany’s DAX is 0.7% higher, and France’s CAC 40 is up 0.2%. German consumer sentiment improved for a third-straight month, while French inflation cooled, and U.K. food inflation rose for a fourth consecutive month. Bond yields across the euro zone are lower, and the euro and pound are both stronger against the dollar following signs of continued trade dialogue between the U.S. and China.