Futures Pointing To Rebound On Wall Street After Trump Delays EU Tariffs

(RTTNews) - Stocks are likely to move to the upside in early trading on Tuesday, regaining ground following the steep drop seen last week. The major index futures are currently pointing to a sharply higher open for the markets, with the S&P 500 futures up by 1.4 percent.

The upward momentum on Wall Street comes after President Donald Trump announced he is delaying a threatened 50 percent tariff on imports from the European Union.

"I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension on the June 1st deadline on the 50% Tariff with respect to Trade and the European Union," Trump said in a post on Truth Social on Sunday.

"I agreed to the extension — July 9, 2025 — It was my privilege to do so," he added. "The Commission President said that talks will begin rapidly."

The move by Trump comes as analysts previously suggested the threatened tariff on the EU was just a negotiating tactic and not where the eventual rate will wind up.

Meanwhile, traders are also looking ahead to earnings news from Nvidia (NVDA), with the AI daring scheduled to release its fiscal first quarter results after the close of trading on Wednesday.

In U.S. economic news, the Commerce Department released a report showing a steep drop by new orders for U.S. manufactured durable goods in the month of April.

The Commerce Department said durable goods orders plunged by 6.3 percent in April after surging by a downwardly revised 7.6 percent in March.

Economists had expected durable goods orders to plummet by 7.9 percent compared to the 9.2 percent spike that had been reported for the previous month.

However, excluding a 17.1 percent nosedive by orders for transportation equipment, durable goods orders rose by 0.2 percent in May after dipping by 0.2 percent in April. Ex-transportation orders were expected to edge down by 0.1 percent.

Not long after the start of trading, the Conference Board is scheduled to release its report on consumer confidence in the month of May. The consumer confidence index is expected to inch up to 87.3 in May after plunging to 86.0 in April.

Stocks moved sharply lower in early trading on Friday but regained some ground over the course of the session. While the major averages climbed well off their worst levels of the day, they still closed firmly in negative territory.

The tech-heavy Nasdaq tumbled as much as 1.7 percent early in the session before ending the day down 188.53 points or 1.0 percent at 18,737.21. The S&P 500 also slid 39.19 points or 0.7 percent to 5,802.82 and the Dow fell 256.02 points or 0.6 percent at 41,603.07.

For the week, the S&P 500 gave up 2.6 percent, while the Nasdaq and the Dow both plunged by 2.5 percent.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index climbed by 0.5 percent, while China's Shanghai Composite Index dipped by 0.2 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the French CAC 40 Index is up by 0.2 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both up by 0.7 percent.

In commodities trading, crude oil futures are falling $0.49 to $61.04 a barrel after rising $0.33 to $61.53 a barrel last Friday. Meanwhile, after soaring $70.80 to $3,365.80 an ounce in the previous session, gold futures are plunging $73.60 to $3,292.20 an ounce.

On the currency front, the U.S. dollar is trading at 144.08 yen versus the 142.85 yen it fetched on Monday. Against the euro, the dollar is trading at $1.1363 compared to yesterday's $1.1387.