June S&P 500 E-Mini futures (ESM25) are up +1.56%, and June Nasdaq 100 E-Mini futures (NQM25) are up +1.63% this morning, pointing to a sharply higher open on Wall Street after a long weekend, as sentiment got a boost from U.S. President Donald Trump’s decision to extend the deadline on sweeping euro area tariffs.
President Trump said he would push back the deadline for the European Union to face 50% tariffs to July 9th from June 1st following a phone call with Commission President Ursula von der Leyen. “We had a very nice call and I agreed to move it,” Trump told reporters Sunday. Von der Leyen said Sunday in a post on X that “Europe is ready to advance talks swiftly and decisively,” but that “a good deal” will need “time until July 9.” That’s the date when Trump’s 90-day pause on his reciprocal tariffs was initially scheduled to expire.
Also aiding sentiment, bond yields slumped worldwide after reports emerged that Japan is looking to stabilize its debt market following weeks of selloff.
Investor focus this week is on an earnings report from semiconductor stalwart Nvidia, the minutes of the Federal Reserve’s latest policy meeting, and the release of the Fed’s preferred inflation gauge.
In Friday’s trading session, Wall Street’s major equity averages closed lower after President Trump threatened to impose sweeping tariffs on the EU and Apple. Deckers Outdoor (DECK) plunged over -19% and was the top percentage loser on the S&P 500 after the maker of Hoka running shoes and UGG boots issued below-consensus FQ1 guidance. Also, chip stocks lost ground, with Microchip Technology (MCHP) sliding more than -3% and ON Semiconductor (ON) falling over -2%. In addition, Apple (AAPL) dropped more than -3% after President Trump stated that the company would face “at least” a 25% tariff if iPhones sold in the U.S. are not manufactured domestically. On the bullish side, Intuit (INTU) climbed over +8% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after the financial software company posted upbeat FQ3 results and raised its full-year guidance.
Economic data released on Friday showed that U.S. new home sales unexpectedly rose +10.9% m/m to a 3-year high of 743K in April, stronger than expectations of 694K.
Minneapolis Fed President Neel Kashkari said on Monday that significant shifts in U.S. trade and immigration policy are creating uncertainty, making it difficult for Fed officials to move on interest rates before September. “Will the picture be clear enough by September? I am not sure right now. We will have to see what the data says, but also how the negotiations are going,” Kashkari said in an interview on Bloomberg Television. He noted that if the U.S. secures trade deals with other countries in the coming months, “that should provide a lot of the clarity we are looking for.”
Meanwhile, U.S. rate futures have priced in a 97.9% probability of no rate change and a 2.1% chance of a 25 basis point rate cut at the conclusion of the Fed’s June meeting.
In this holiday-shortened week, market participants will focus on earnings reports from several major companies, with semiconductor giant Nvidia’s (NVDA) report on Wednesday attracting the most attention. Wedbush analysts stated that the company is poised to remain a key beneficiary of massive AI infrastructure investments by hyperscalers. Retailers such as Costco Wholesale (COST), AutoZone (AZO), and Dick’s Sporting Goods (DKS), along with notable companies like Salesforce (CRM), Marvell Technology (MRVL), Dell Technologies (DELL), and HP Inc. (HPQ), are also set to release their quarterly results this week.
On the economic data front, the April reading of the U.S. core personal consumption expenditures price index, the Fed’s preferred inflation gauge, will be the main highlight. Other noteworthy data releases include U.S. GDP (second estimate), the Richmond Fed Manufacturing Index, Initial Jobless Claims, Pending Home Sales, Crude Oil Inventories, Goods Trade Balance, Personal Income, Personal Spending, Wholesale Inventories (preliminary), the Chicago PMI, and the University of Michigan’s Consumer Sentiment Index.
Market watchers will also closely monitor the Fed’s minutes from the May 6-7 meeting, set for release on Wednesday, for further insights into policymakers’ discussions on interest rates and the economy. The Fed signaled that rate cuts are unlikely for now due to inflation risks, though officials remain concerned about the potential economic damage from tariffs.
In addition, several central bankers are scheduled to deliver remarks this week, including Kashkari, Williams, Waller, Barkin, Goolsbee, Kugler, Daly, Logan, and Bostic.
Today, all eyes are focused on the U.S. Conference Board’s Consumer Confidence Index, which is set to be released in a couple of hours. Economists, on average, forecast that the May CB Consumer Confidence index will stand at 87.1, compared to last month’s figure of 86.0.
Investors will also focus on U.S. Durable Goods Orders and Core Durable Goods Orders data. Economists expect April Durable Goods Orders to be -7.6% m/m and Core Durable Goods Orders to be -0.1% m/m, compared to the prior figures of +9.2% m/m and 0.0% m/m, respectively.
The U.S. S&P/CS HPI Composite - 20 n.s.a. will be released today as well. Economists foresee the March figure coming in at +4.5% y/y, the same as in February.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.473%, down -0.84%.
The Euro Stoxx 50 Index is up +0.56% this morning, building on yesterday’s gains following the delay of U.S. President Donald Trump’s proposed 50% tariffs on the bloc. Defense stocks led the gains on Tuesday after U.S. President Trump said he was weighing additional sanctions on Russia. Financial and industrial stocks also gained ground. A survey released on Tuesday showed that German consumer sentiment is set to improve slightly heading into June as wage expectations rose and concerns about the economic outlook eased. Separately, preliminary data from the statistics agency Insee showed that France’s annual inflation rate unexpectedly cooled in May, likely paving the way for a European Central Bank interest rate cut next month. In addition, data showed that the Euro Area’s economic sentiment indicator rose in May, marking its first increase in three months. Meanwhile, ECB policymaker Francois Villeroy de Galhau said on Tuesday that the normalization of interest rates in the Eurozone is likely not yet finished. In other news, Reuters reported that the European Commission has requested top European companies and CEOs to disclose their U.S. investment plans in an effort to gather leverage ahead of critical trade negotiations with Washington. In corporate news, Flsmidth & CO A/S (FLS.C.DX) gained over +3% after Goldman Sachs upgraded the stock to Buy from Neutral.
Germany’s GfK Consumer Climate Index, France’s CPI (preliminary), Eurozone’s Business and Consumer Survey, and Eurozone’s Consumer Confidence data were released today.
The German June GfK Consumer Climate Index arrived at -19.9, in line with expectations.
The French May CPI has been reported at -0.1% m/m and +0.7% y/y, weaker than expectations of +0.1% m/m and +0.9% y/y.
Eurozone May Business and Consumer Survey came in at 94.8, stronger than expectations of 94.0.
Eurozone May Consumer Confidence stood at -15.2, in line with expectations.
Asian stock markets today closed mixed. China’s Shanghai Composite Index (SHCOMP) closed down -0.18%, and Japan’s Nikkei 225 Stock Index (NIK) closed up +0.51%.
China’s Shanghai Composite Index closed lower today as investors largely shrugged off upbeat industrial profit data from the country. Automobile stocks extended losses on Tuesday after Reuters reported that the country’s commerce ministry will hold talks with industry groups and automakers, including BYD and Dongfeng Motor, to address the growing trend of selling “used cars” that were never driven. Gold mining stocks also slumped. At the same time, healthcare stocks outperformed. Data from the National Bureau of Statistics released on Tuesday showed that China’s industrial profit growth accelerated in April, supported by rising production despite lingering uncertainty stemming from trade tensions between Beijing and Washington. Industrial profit rose 3.0% from a year earlier in April, up from the 2.6% growth in March. Dan Wang, Eurasia Group’s China director, said, “China’s industrial policy priorities look to be working well.” Meanwhile, China and the European Union are stepping up cooperation in response to rising U.S. tariffs, with officials from both sides set to meet again early next month to strengthen ties and consider joint measures. In other news, Moody’s on Monday maintained its negative outlook on China, citing risks stemming from trade uncertainties with its major trading partners. In corporate news, JCHX Mining Management slid over -4% after suspending underground mining services at Zijin Mining’s Kamoa-Kakula copper mine in the Democratic Republic of Congo due to several seismic incidents in the Kakula section. Investors now await China’s manufacturing activity data for May, set for release on Saturday, for further insights into the health of the economy.
Japan’s Nikkei 225 Stock Index reversed earlier losses and closed higher today after reports emerged that the government is looking to stabilize its debt market following weeks of selloff. Heavy industry stocks led the gains on Tuesday. Data released on Tuesday showed that a key gauge of Japan’s service-sector inflation hit 3.1% in April, sustaining expectations of additional interest rate hikes by the Bank of Japan. Also, BOJ Governor Kazuo Ueda said on Tuesday that the central bank must remain alert to the risk that rising food prices could drive up underlying inflation, which is already close to its 2% target, signaling the central bank’s willingness to proceed with further rate hikes. Meanwhile, yields on super-long Japanese government bonds plunged on Tuesday after Bloomberg News reported that the country’s finance ministry had sent a questionnaire to market participants about the appropriate levels of government debt issuance. Separately, Reuters reported that Japan’s Ministry of Finance is set to review the structure of its bond program for the current fiscal year, which may include reducing the issuance of super-long bonds. The yen fell on the reports, which typically supports shares of domestic companies by boosting the value of overseas earnings when converted back into the Japanese currency. Investors also remain focused on the outcome of U.S. trade negotiations with Japan. The country’s chief trade negotiator, Ryosei Akazawa, said on Friday that he aims to resolve tariff talks ahead of a June meeting between U.S. President Donald Trump and Japan’s Prime Minister Shigeru Ishiba. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -1.07% to 24.15.
The Japanese April Corporate Services Price Index came in at +3.1% y/y, stronger than expectations of +3.0% y/y.
Pre-Market U.S. Stock Movers
The Magnificent Seven stocks are moving higher in pre-market trading, with Nvidia (NVDA) and Tesla (TSLA) rising more than +2%.
Trump Media & Technology Group (DJT) jumped over +13% in pre-market trading after the Financial Times reported that Trump’s social media company aims to raise roughly $3 billion to purchase cryptocurrencies like bitcoin.
Informatica (INFA) surged more than +10% in pre-market trading after the Wall Street Journal reported that Salesforce resumed talks to buy the company.
Boeing (BA) gained over +1% in pre-market trading after the Wall Street Journal reported that the aerospace giant and the Justice Department reached a tentative deal for Boeing to pay a $1.1 billion settlement to avoid prosecution related to the 737 MAX crashes.
Block (XYZ) rose more than +3% in pre-market trading after BNP Paribas Exane upgraded the stock to Outperform from Neutral with a $72 price target.
You can see more pre-market stock movers here
Today’s U.S. Earnings Spotlight: Tuesday - May 27th
Bank of Nova Scotia (BNS), Okta (OKTA), Champion Homes (SKY), Box (BOX), Golar (GLNG), Semtech (SMTC), Agora (API), Dynagas LNG (DLNG).
On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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