Markets surge on EU tariff delay

US stocks roared back to life on Tuesday, snapping a four-day losing streak, after President Donald Trump announced a delay to sweeping tariffs on European Union imports. The Dow Jones Industrial Average surged 740 points, or 1.78%, to close at 42,343.65, the S&P 500 gained 2.05% to 5,921.54, and the tech-heavy Nasdaq Composite jumped 2.47% to finish at 19,199.16.

Trump confirmed Sunday that he would postpone the planned 50% levy on EU goods until July 9, following a request from European Commission President Ursula von der Leyen. The delay eased market fears that had been building since last week’s surprise tariff announcement, which sent equities tumbling.

Technology stocks led the rebound, with Tesla climbing nearly 7% after CEO Elon Musk said he would be shifting his focus back to his companies and away from politics. Other major tech names also saw strong gains, including Nvidia, AMD, Apple, and Microsoft.

Small-cap stocks also joined the rally, with the Russell 2000 index advancing about 2.5%. Broader market momentum was evident, with more than 90% of S&P 500 constituents closing higher.

Adding fuel to the rally, US consumer confidence came in significantly stronger than expected. The Conference Board’s index rose 12.3 points in May to 98.0, well above the consensus forecast of 87. Gains were broad-based, with the Present Situation Index rising to 135.9 and the Expectations Index jumping to 72.8.

Brent crude is trading 0.59% lower at US$64.36 a barrel.

WTI crude is trading 0.63% lower at US$61.14 a barrel.

Spot gold is trading 1.2% lower at US$3,303.62 an ounce.

Gold futures (COMEX) are trading 1.87% lower at US$3,330.90 an ounce.

One Australian dollar is buying 64.44 US cents.

Local focus will turn to Australia’s April CPI indicator, expected to remain steady or ease to 2.3%.

Across the Tasman, the Reserve Bank of New Zealand is widely expected to cut rates by 25 basis points at Wednesday’s policy meeting.

The SPI futures are pointing to a 47 point rise.