Dow rises 500 points after Trump delays steep EU tariff until July: Live updates

Stocks rose Tuesday after President Donald Trump said over the holiday weekend that he agreed to delay tariffs of 50% on the European Union.

The Dow Jones Industrial Average traded 523 points higher, or 1.3%. The S&P 500 gained 1.6%, while the Nasdaq Composite popped 2%.

Trump on Sunday said that he would push back the 50% levy deadline on the EU to July 9 following a request from Ursula von der Leyen, the president of the European Commission. That comes after Trump last week proposed an import tax of 50% on the EU beginning June 1.

National Economic Council director Kevin Hassett said on CNBC’s “Squawk Box” that he expects to “see a few more deals even this week.” U.S. consumer confidence data released Tuesday came in stronger than expected for May on hopes of trade agreements.

“We’re still wary about chasing the SPX at these levels given complacency around two major areas of macro risk (tariffs and fiscal policy/yields) along with elevated equity valuations,” wrote Adam Crisafulli of Vital Knowledge. “Trump’s most bombastic tariff threats … won’t become a reality, but he’s still imposed substantial import taxes in just the last four months, and his administration is probably not finished.”

Tesla shares popped 4% after CEO Elon Musk said he was shifting his focus away from politics and back into his companies. Other tech-related names were also higher, including Nvidia, AMD, Apple and Microsoft.

Tuesday’s action follows a losing week on Wall Street. The Dow, S&P 500 and Nasdaq Composite all slid more than 2% as Trump’s calls for tariffs on the EU. The U.S. stock market was closed Monday in recognition of Memorial Day. Still, all three indexes are on track to end May’s trading month in the green.

Traders this week will follow earnings from Okta due after the bell Tuesday, followed by companies such as Nvidia, Macy’s and Costco later in the week. More than 95% of S&P 500 companies have reported this earnings season and almost 78% have surpassed analyst expectations, according to FactSet.