Dow rises 400 points as stocks soar on Trump’s EU tariff delay

Stocks Rally as Investors Cheer Tariff Delay and Positive Macro Trends

The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all opened higher as U.S. markets started the week on an optimistic note. Investor sentiment improved after President Trump delayed the proposed 50% tariff on the European Union, postponing the potential implementation date to July 9.

The Dow surged over 400 points at Tuesday's open, while the S&P 500 climbed 1.1%. The tech-heavy Nasdaq Composite also gained ground, rising approximately 1.3% as stocks kicked off the holiday-shortened week with strong momentum.

Growing optimism about a potential U.S.-EU trade deal, combined with existing agreements between the U.S. and China as well as the U.K., lifted global markets. Investor confidence was further supported by declining Treasury yields, with the 30-year yield falling to 4.96% and the 10-year yield stabilizing near 4.47%.

The dollar strengthened as markets reacted to speculation that Japan might reduce its bond sales. This week, investors will focus on key economic data, Federal Reserve commentary, and earnings reports from major companies including Nvidia.

Despite ongoing trade tensions, Wharton School Professor Jeremy Siegel maintains a positive outlook on equities, noting that tariffs are manageable with expected caps of 10% for most imports and 30% for Chinese goods.

In cryptocurrency markets, Bitcoin and Ethereum posted modest gains, with Bitcoin surpassing $110,000 and Ethereum rising 3% to $2,665. Bitcoin's recent surge to a record high above $111,000 continues to drive investor interest in digital assets.