Wall Street Rebounds After Trump Announces Delay of Tariffs on the EU

• Wall Street Recovers
• Trump Delays EU Tariffs
• Tech Sector Leads Market Gains

The New York Stock Exchange opened on a positive note this Tuesday after President Donald Trump announced a postponement of the 50% tariffs on the European Union.

The Dow Jones Industrial Average rose by 0.85%, reaching 41,957 points at the opening bell. Just ten minutes into the session, the upward momentum extended to other key indices.

The S&P 500 climbed 1.07% to 5,865, while the Nasdaq surged 1.33% to hit 18,987 points.

The bullish trend is being attributed directly to Trump’s announcement extending the deadline for implementing the new tariffs.

Trump Delays EU Tariffs

The decision was made public on Sunday following a phone call between Trump and European Commission President Ursula von der Leyen.

Both sides agreed to postpone the tariff implementation until July 9 in hopes of reaching a trade agreement.

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The move temporarily eases tensions that had rattled markets over the past week. The three main Wall Street indices had recorded declines of over 2% during the prior days.

According to EFE, pressure was mounting due to Washington’s threat to impose steep duties on European imports.

Wall Street Sees Tech and Sectoral Gains

Trump also warned of specific measures against Apple if the company failed to shift some of its production to the US.

These warnings caused investor uncertainty, fueling fears of a renewed global trade war.

However, the shift in tone from the White House has been welcomed by markets, which reacted with optimism.

Among the top-performing sectors was technology, which rose 1.56%. Nvidia stood out with a gain of 2.02%, followed by Nike, up 1.82%.

Southwest Airlines Rises on Baggage Fee Changes

The only decliner among the 30 companies in the Dow Jones was Salesforce, which dropped 0.64%.

This week, investors are closely watching quarterly earnings reports from key firms such as Nvidia, Macy’s, and Costco.

These results are expected to provide insight into the strength of the ongoing economic recovery.

The airline industry also saw notable activity. Southwest Airlines, the country’s fourth-largest airline, gained 3.26% in stock value.

The increase followed an announcement that the airline will begin charging for checked luggage starting Wednesday.

Under the new pricing structure, the first bag will cost $35 and the second $45. Only passengers with elite status will be exempt from the fee.

Analysts believe the move could represent a new revenue stream for Southwest as the sector continues to rebound.

In the energy market, Texas crude oil registered a modest decline of 0.62%.

Markets Turn Their Attention to Trump’s Trade Decisions

Despite the dip, prices remained above $60 per barrel, trading at $61.15 at the latest update.

Oil performance will also be a key factor to monitor in the coming days amid evolving global demand.

This week is shaping up to be a turning point following recent volatility, with attention focused on future US trade decisions.

For now, the EU tariff delay has helped restore a measure of stability to the financial markets, according to EFE and Telemundo.