Futures on Wall Street have advanced after US President Donald Trump delayed the imposition of 50% tariffs on the European Union starting June 1, until July 9.
The Dow futures gained as much as 320 points post the announcement, while futures on the S&P 500 and the Nasdaq have risen 45 points and 200 points respectively.
However, it must be noted that Wall Street will be closed for trading today on account of the Memorial Day holiday. As a result, futures trading will halt at 12 noon local time on Monday, and will resume at 5 PM for next day's trade.
US markets had declined on Friday after Trump had announced that there will be a 50% tariff imposed on the European Union starting June 1, as talks with them were "going nowhere" and that EU was "being very difficult."
However, the tariff imposition date has now been delayed to July 9, which is also the end of the 90-day pause that Trump had announced on his reciprocal tariffs on April 9.
The dollar also strengthened on Trump’s latest statement after an index of the greenback fell to the lowest level since December 2023 on Friday. The yen and Swiss franc, major beneficiaries of the Friday move, retreated early Monday in Asia.
The moves reflected the increasing uncertainty in markets, with Trump’s broadside against Europe on Friday a harsh reminder of the president’s volatile policymaking. Trump’s tariff threats on Friday also included a 25% levy on smart phones if companies including Apple Inc. and Samsung Electronics Co. failed to move production to the US.
Treasuries ended Friday little changed after yields soared earlier in the week in a sign traders were growing anxious about the fiscal effects of Trump’s signature legislative package, which features new tax breaks. Treasuries were closed on Monday for a holiday.
Investors are also gearing up for the Federal Reserve’s preferred inflation measure, the US personal consumption expenditures price index excluding food and energy, which will be released Friday. The April reading is forecast to rise 0.1% based on consensus expectations.
(With Inputs From Agencies.)
The Dow futures gained as much as 320 points post the announcement, while futures on the S&P 500 and the Nasdaq have risen 45 points and 200 points respectively.
However, it must be noted that Wall Street will be closed for trading today on account of the Memorial Day holiday. As a result, futures trading will halt at 12 noon local time on Monday, and will resume at 5 PM for next day's trade.
US markets had declined on Friday after Trump had announced that there will be a 50% tariff imposed on the European Union starting June 1, as talks with them were "going nowhere" and that EU was "being very difficult."
However, the tariff imposition date has now been delayed to July 9, which is also the end of the 90-day pause that Trump had announced on his reciprocal tariffs on April 9.
The dollar also strengthened on Trump’s latest statement after an index of the greenback fell to the lowest level since December 2023 on Friday. The yen and Swiss franc, major beneficiaries of the Friday move, retreated early Monday in Asia.
The moves reflected the increasing uncertainty in markets, with Trump’s broadside against Europe on Friday a harsh reminder of the president’s volatile policymaking. Trump’s tariff threats on Friday also included a 25% levy on smart phones if companies including Apple Inc. and Samsung Electronics Co. failed to move production to the US.
Treasuries ended Friday little changed after yields soared earlier in the week in a sign traders were growing anxious about the fiscal effects of Trump’s signature legislative package, which features new tax breaks. Treasuries were closed on Monday for a holiday.
Investors are also gearing up for the Federal Reserve’s preferred inflation measure, the US personal consumption expenditures price index excluding food and energy, which will be released Friday. The April reading is forecast to rise 0.1% based on consensus expectations.
(With Inputs From Agencies.)
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