NEW YORK (AP) — Wall Street is rallying Tuesday as the roller-coaster ride created by President Donald Trump’s trade policies whips back upward, this time because of a delay for his tariffs on the European Union.

The S&P 500 was up 1.9% in its first trading since Trump said Sunday that the United States will delay a 50% tariff on goods coming from the European Union until July 9 from June 1. The European Union’s chief trade negotiator later said on Monday that he had “good calls” with Trump officials and the EU was “fully committed” to reaching a trade deal by July 9.

The Dow Jones Industrial Average was up 646 points, or 1.6%, as of 1:32 p.m. Eastern time, and the Nasdaq composite was 2.3% higher. They’re on track to more than recover their losses from Friday, when Wall Street’s roller coaster dropped after Trump announced the tariffs on France, Germany and the other 25 countries represented by the European Union.

Such talks give hopes that the United States can reach a deal with one of its largest trading partners that would keep global commerce moving and avoid a possible recession. Trump reached a similar pause on his stiff tariffs for China earlier this month, which launched an even bigger rally on Wall Street at the time.

Caution still remains on Wall Street, of course, even if the S&P 500 has climbed back within 4% of its record after falling roughly 20% below the mark last month.

Talks don’t guarantee results, and a worry is that all the uncertainty caused by on-again-off-again tariffs could damage the economy itself by pushing U.S. households and businesses to freeze their spending and investments out of fear of what’s to come. Surveys have already shown U.S. consumers are feeling worse about the economy’s prospects and where inflation may be heading because of tariffs.

On Tuesday, though, optimism mostly ruled. The stock market’s gains accelerated after a report released by the Conference Board said confidence among U.S. consumers improved by more in May than economists expected.

It was the first increase in six months, and consumers’ expectations for income, business and the job market in the short term jumped sharply, though it still remains below the level that typically signals a recession ahead. About half the survey results came after Trump paused some of his tariffs on China.

Nvidia rallied 3.2% and was one of the strongest forces driving the market higher ahead of its profit report coming on Wednesday. It’s the last to report this quarter among the “Magnificent Seven” Big Tech companies that have grown so large that their stock movements dominate the rest of the market.

Nvidia has been riding a tidal wave of growth created by the frenzy around artificial-intelligence technology, but it is also facing criticism that its stock price has shot too high.

Informatica climbed 5.8% after Salesforce said it would buy the AI-powered cloud data management company in an all-stock deal valuing it at about $8 billion. Salesforce added 1.9%.

The gains were widespread, and more than 90% of the stocks within the S&P 500 were rising.

One of the outliers was AutoZone, which fell 4.6% following a mixed report on its performance for the three months through May 10. Its profit fell short of analysts’ expectations, though its growth in revenue was stronger than expected.

CEO Phil Daniele said both its DIY and commercial businesses did well domestically, but shifting moves in foreign-currency values put pressure on the retailer’s operations outside the United States. The U.S. dollar’s value has been swerving against other currencies because of uncertainty around Trump’s trade policies. And when the dollar weakens, it can mean each peso of sales made in Mexico is worth fewer dollars.

In the bond market, Treasury yields eased to take some of the pressure off the stock market. The yield on the 10-year Treasury fell to 4.44% from 4.51% late Friday. It had been rising last week, in part because of worries about the U.S. government’s rapidly increasing debt.

Yields have been climbing for bond markets around the developed world, particularly in Japan, where a recent auction of longer-term bonds found relatively few buyers. But analysts said worries eased a bit after Japan’s finance ministry sent a questionnaire to bond investors that they took as a signal of efforts to calm the market.

In stock markets abroad, European indexes mostly rose, while Asian indexes were mixed.

___

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

Share:
More In Markets
Wall Street ticks to more records, led by technology stocks
U.S. stocks edged up to more records. The S&P 500 rose 0.1% Thursday. The Dow Jones Industrial Average added 0.2%, while the Nasdaq composite climbed 0.4%. All three set all-time highs. Technology stocks helped lead the way after OpenAI announced partnerships with South Korean companies for its Stargate artificial-intelligence infrastructure project. Fair Isaac surged to its best day in nearly three years after unveiling a program where customers can potentially bypass big credit bureaus for FICO credit scores. Stock indexes also rose across much of Europe and Asia, while Treasury yields eased in the bond market.
Profit margin on flipping a home is at a 17-year low due to high prices
It pays less and less to buy and flip a home these days. The typical home flipping profit margin fell in the second quarter to its lowest level since 2008, with a typical return of 25.1% before expenses. That's according to an analysis by Attom, a real estate data company. Rising home prices are driving up acquisition costs, making flipping less profitable. The median price for a flipped home reached a record high of $259,700, according to Attom. Meanwhile, with many aspiring homeowners priced out of the market, real estate investors are taking up a bigger share of U.S. home sales overall.
Load More