After a rough patch last week, U.S. stock $XRP
markets bounced back with strength on Tuesday. The surge was largely driven by President Donald Trump's decision to delay a proposed 50% tariff on European imports. Adding further fuel to the rally, Elon Musk announced a shift in focus away from politics to concentrate on leading his companies, triggering a renewed wave of investor enthusiasmâespecially in the tech sector.$SOL
đč Trump Eases Trade Jitters, Markets Response $BTC
Breaking a four-day losing streak, the S&P 500 soared 2.05% to close at 5,921.54. The Dow Jones Industrial Average gained more than 740 points (+1.78%) to end the session at 42,343.65. The Nasdaq Composite led the charge, jumping 2.47% to 19,199.16.
The rebound came after Trumpâs Sunday announcement postponing the implementation of hefty tariffs on European imports from June 1 to July 9. The delay followed direct intervention from European Commission President Ursula von der Leyen and signaled a temporary easing of global trade tensions.
đč Musk Refocuses, Tech Stocks Skyrocket
Tech stocks were among the biggest gainers on the day. Tesla shares jumped 7% after Elon Musk said he was stepping back from political commentary to fully refocus on his companies. That single statement revived risk appetite across the tech space, lifting heavyweights like Nvidia, AMD, Apple, and Microsoftâand pushing the Nasdaq to outperform its peers.
đč Optimism Spreads Beyond Big Tech
The rally wasnât confined to tech alone. U.S. Steel rose 2% following reports that Japanâs Nippon Steel is moving ahead with a $55-per-share acquisition plan. Broader market sentiment was overwhelmingly positive, with over 90% of S&P 500 components closing in the green. Small-cap stocks also joined the rallyâthe Russell 2000 index gained approximately 2.5%.
Tuesday's rebound was further amplified by the markets reopening after Memorial Day, providing a burst of fresh momentum across nearly all sectors.
đč Strong Consumer Data & White House Comments Lift Spirits
After a week in which all three major indexes had fallen more than 2%, investor sentiment shifted rapidly. Speaking on CNBCâs Squawk Box, National Economic Council Director Kevin Hassett hinted at further progress on trade talks, giving markets a reason to believe better days are ahead.
Also boosting confidence was a stronger-than-expected May consumer confidence report, which reinforced hopes for economic resilience and additional trade clarity.
đč Eyes on Earnings as Investors Look for Confirmation
Despite the euphoria, investors remain cautious and are looking to corporate earnings for validation. Okta was scheduled to report after Tuesdayâs close, while key players like Nvidia, Macyâs, and Costco are lined up for later in the week.
According to FactSet data, over 95% of S&P 500 companies have reported earnings this quarterâwith an impressive 78% beating analyst expectations.
đč Caution Over China Still Lingers
Not everyone is fully convinced this rally has legs. Adam Parker of Trivariate Research noted in a weekend commentary that markets are lacking strong conviction in either direction.
Parker emphasized that U.S.-China trade relations remain the biggest wildcard. âThe only trade conversation that truly matters is what the U.S. does with China,â he said. While macroeconomic concerns persist, he believes the actual impact on the S&P 500 may end up being less severe than initially feared.
đč Momentum Rekindled After Holiday Pause
Dann Ryan, managing partner at Sincerus Advisory, suggested Tuesdayâs surge was fueled by pent-up momentum. âThe long weekend added some extra energy to todayâs sharp moves,â he commented. âWith trade worries cooling, the market has hit the accelerator again.â
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đ° Crypto Markets Join the Rally
The excitement wasnât limited to traditional equities. The cryptocurrency market also staged a major rally. Total crypto market capitalization has jumped nearly $1 trillion, a 42% increase since the April 8 low, bringing it to about $3.4 trillionâjust 6% below its December 2024 all-time high.
Even excluding Bitcoin, the market added $319 billion (+35%), though it's still $380 billion short of the November 2021 peak and $381 billion off 2024âs record high. At the time of writing, Bitcoin was trading at $109,877.
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