Trump on Monday said he would pause his threatened 50-percent tariffs on the European Union until July 9 to allow for talks, adding on Tuesday that bloc had called for quick meetings, a “positive event,” he said in a social media post.
About 15 minutes into trading, the Dow Jones Industrial Average was up 1.0 percent at 41,996.23. The broad-based S&P 500 climbed 1.2 percent to 5,869.71, while the tech-rich Nasdaq Composite Index jumped 1.3 percent to 18,988.34.
“It appears over the weekend that the administration made some calming commentary about getting on a fast track on the negotiations with the Eurozone and delaying that 50 percent tariff announcement,” said Art Hogan of B. Riley Wealth Management.
“And that seems to be calming nerves a bit coming into the new week.”
Major US indices had declined on Friday after Trump revived his trade war posture, threatening new levies on the EU and on Apple and other smartphone companies that do not manufacture in the United States.Among individual companies, Tesla shot up 3.7 percent after billionaire CEO Elon Musk pledged to return “24/7” to work on his commercial ventures, signaling a further retreat from politics.On the downside, data from the European Automobile Manufacturers’ Association said Tesla’s sales fell by more than 50 percent in April compared with the year-ago period.
This week’s calendar includes earnings for artificial intelligence titan Nvidia as well as key US inflation data.