President Donald Trump has announced that he will delay imposing a 50% tariff on the European Union, leading to a significant surge in the US stock market on Tuesday (27th). The Dow Jones Industrial Average soared by 740.58 points, or 1.78%, closing at 42,343.65 points, effectively ending a four-day streak of declines. The S&P 500 index also rose by 118.72 points, or 2.05%, finishing at 5,921.54 points, while the Nasdaq Composite surged by 461.95 points, or 2.47%, closing at 19,199.16 points, with tech stocks like Tesla showing particularly strong performance as its stock jumped about 7%.

On the 25th, Trump indicated that at the request of European Commission President Ursula von der Leyen, he agreed to extend the deadline for the 50% tariff until July 9. Trump’s prior proposal to impose the tariff starting June 1 had raised market concerns. Kevin Hassett, director of the National Economic Council, stated he expects "more agreements to be reached within this week." The US consumer confidence index for May, released the same day, exceeded expectations and further boosted market sentiment. In addition to tech stocks, shares of U.S. Steel also rose by about 2%, following reports that Japan's Nippon Steel plans to complete its acquisition of U.S. Steel at $55 per share. Since the market was closed on Monday (26th) for Memorial Day, Tuesday marked the first day of a shortened trading week, with stocks generally trending upward. More than 90% of the S&P 500 components closed in the green, and small-cap stocks also performed well, with the Russell 2000 index rising about 2.5%.

This rebound follows last week’s broad declines in the US stock market, driven by initial worries stemming from Trump's tariff announcements. All three major indices—the Dow, S&P 500, and Nasdaq—had dropped over 2% last week. Sincerus Advisory partner Dann Ryan remarked, "This long weekend seems to have built up the energy for today's surge. The trade tensions that previously caused market volatility have quickly subsided, which has created a fast lane for recovery." This week, the market will be watching corporate earnings reports, including Okta, NVIDIA, Macy's, and Costco. According to FactSet, over 95% of S&P 500 companies have reported earnings, with nearly 78% exceeding market expectations. Trivariate Research founding partner Adam Parker noted, "Investors currently seem to be awaiting any strong catalyst for the stock market." He added, "Whether bullish or bearish, there appears to be a lack of strong conviction in the market regarding stocks. This might not necessarily be bad as a lack of strong bearish sentiment could be beneficial."