Trump's Tariff Turnaround Boosts U.S. Stock Futures

U.S. stock index futures surged on Tuesday after President Donald Trump mitigated his proposal to impose steep tariffs against the European Union. The decision to delay tariffs led to a temporary alleviation of tensions between the United States and the European bloc, sparking positive reactions from traders returning after Memorial Day.

Trump's rollback of the 50% tariff threat on EU imports, initially set for June, reinstated a July 9 deadline. This period allows for potential trade negotiations between Washington and the EU. UBS strategists expressed caution, stating that they do not assume a favorable resolution by the July deadline. Despite mixed performances in Asian and European markets, U.S. assets displayed marked positivity as traders resumed activity following the long weekend.

Prominent market movements included significant rises in Dow E-minis, S&P 500 E-minis, and Nasdaq 100 E-minis, with premarket trading showing gains for major tech stocks such as Apple, Alphabet, and Tesla. Meanwhile, Trump's Media & Technology Group reported plans to raise $3 billion for investments in cryptocurrencies, causing a significant stock surge. On the economic front, U.S. Treasury yields declined, and anticipation builds for upcoming consumer confidence data and Federal Reserve meeting minutes.

(With inputs from agencies.)