U.S. futures rallied sharply Monday after President Donald Trump announced a delay in tariffs on European Union goods. The 50% tariff, originally set for June 1, will now begin on July 9.
This decision came after a phone call with Ursula von der Leyen, president of the European Commission, who expressed willingness to start serious trade talks.
This shift gave U.S. markets a boost. Futures for the S&P 500 rose 1%, while Dow Jones futures climbed 0.8%. In Asia, markets were mixed. Tokyo’s Nikkei 225 gained 0.7%, and South Korea’s Kospi rose 1.2%.
But Hong Kong’s Hang Seng and China’s Shanghai Composite slipped 1% and 0.3%, respectively.
So, what does this mean for everyday people? Simply put, fewer tariffs for now could keep prices steadier, especially for products imported from Europe.
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Consumers may get a bit of relief from higher costs that tariffs usually bring. However, the trade tension still looms large, making business decisions tricky.
Last week, the market felt the sting of uncertainty. The S&P 500 had its worst week in seven, dropping 0.7%. Apple’s stock fell 3% after Trump warned CEO Tim Cook about tariffs on iPhones made overseas. Trump even expanded the threat to all smartphones, including Samsung’s. His stance added a sharp twist, pressuring companies caught in the crossfire of his trade war.
Some companies are now so uneasy they are holding back financial forecasts. Deckers Outdoor, known for Ugg boots, saw its stock fall nearly 20% despite good profits. Ross Stores also pulled its yearly forecast, blaming uncertainty tied to China’s imports.
But not all news was bad. Intuit, the maker of TurboTax and Credit Karma, jumped 8.1% after beating profit estimates. Stocks linked to nuclear energy also rallied after Trump pushed for faster licensing to boost the sector. Oklo, a company building new nuclear plants, soared 23%.
The big picture is clear: markets are riding waves of trade drama. The S&P 500 was down 20% from its peak last month due to fears of tariffs causing a global slowdown. Since then, it climbed back close to all-time highs after Trump paused some tariffs, especially on China.
Oil prices stayed stable Monday, with U.S. crude up slightly to $61.62 per barrel. The dollar weakened a bit against the yen, while the euro nudged higher.
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