Stan Choe, AP Business Writer
NEW YORK (AP) — Wall Street climbed Tuesday, bringing back the upwards as a roller coaster ride created by President Donald Trump’s trade policy.
The S&P 500 was 1.4% higher in its first transaction since President Trump said the US would delay tariffs on 50% of goods coming from the European Union from June 1 to July 9.
The Dow Jones industrial average rose 401 points (1%) as of 10:10am Eastern time, with Nasdaq Composite rising 1.8%. They’re on a better pace than recovering losses since Friday, when the Wall Street roller coaster fell after Trump announced tariffs in France, Germany and the 25 other countries represented by the European Union.
Such consultations hope that the US can maintain the wheels of global commercial and enter into contracts with one of its biggest trading partners to avoid a recession. Trump reached a similar moratorium on his strict tariffs on China earlier this month, launching even bigger rally on Wall Street at the time.
Of course, there’s still some caution left on Wall Street, even if the S&P 500 has returned to within 4.3% of its record after falling below about 20% last month.
The consultations do not guarantee results, and what is concerning is that by encouraging US households and businesses to freeze spending and investments out of fear of the future, all the uncertainty caused by the tariffs being addressed can undermine the economy itself. Research already shows that consumers are exacerbating the economic outlook and where inflation is heading due to tariffs.
But on Tuesday, optimism was largely dominated. Early profits in the stock market were higher following a report that said trust among US consumers improved more than economists had expected.
This was the first increase in six months, and while consumer expectations for short-term income, business and job markets have skyrocketed, they are usually below levels of recession. About half of the survey came after Trump suspends some of the tariffs in China.
Nvidia rose 2.8%, one of the most powerful forces driving the market higher ahead of its earnings report scheduled for Wednesday. The quarter reported among the “magnificent Seven” tech giants reported that their stocks have grown to dominate the rest of the market.
Nvidia is riding the tide of growth created by Frenzy, with a focus on artificial intelligence technology, but has also faced criticism that the stock price is too high.
Informatica rose 5.3% after Salesforce said it would buy the AI-powered Cloud Data Management Company and buy it in a valuable deal for around $8 billion. Salesforce added 0.7%.
Autozone fell 2.8% after a complex report on performance for the three months ended May 10th. The profits did not meet analyst expectations, but revenue growth was stronger than expected.
CEO Phil Daniel said both DIY and commercial operations were well done domestically. However, when mobility moves at the value of foreign currency, it puts pressure on the operations of retailers outside the US.
The value of the US dollar has been changing for everything from the euro to the Mexican peso due to uncertainty over Trump’s trade policy. A weaker dollar means each peso in sales made in Mexico is one dollar less.
In the bond market, the Treasury Department has been eased to remove some of the pressure from the stock market. The 2010 Treasury yield fell to 4.47% from 4.51% on Friday. It was on the rise last week due to concerns about the rapidly increasing debt increase in the US government.
In Japan, where recent auctions of developed countries, particularly Japan, found relatively few buyers, bond market yields are rising. Analysts said concerns were eased after the Japanese Ministry of Finance sent a survey to investors that they took as a signal to efforts to calm the market.
In overseas stock markets, European indexes were mostly rising, while Asian indexes were mixed.
AP business writers Matt Ott and Elaine Kurtenbach contributed.
Original release: May 27, 2025 8:29am EDT
