Dow Jones goes up more than 500 points after Trump’s step back in his tariff threat

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By Jack Ferson

Dow Jones goes up more than 500 points after Trump's step back in his tariff threat

Futures linked to Dow Jones index rise 539 points or 1.29%, up to 42,142 points, while those of the S&P 500 advance 1.43% to 5,885 points. Nasdaq 100 futures rise 1.57% to 21,241 points.

The large New York indices come from a longer weekend than usual for the celebration yesterday Monday of the Fallen Day. Last week the three accumulated falls greater than 2%, weighed with Concern for the growing American debt and the drift of commercial policy.

The reduction of the US credit rating by the Moody’s agency and the approval in the Chamber of Representatives of the ambitious Trump Fiscal Law, which is expected to increase substantially the federal debt, had already scared the investors of Variable rent when the markets were shaken by the announcement of President Trump that as of June 1, the US would impose tariffs of 50% To imports from the European Union, expressing its frustration due to the slowness to which trade negotiations with the community block advanced.

However, last Sunday Trump retracted his threat, expanding the term of July 9 so that the conversations between Washington and the EU can lead to an agreement. But analysts do not trust at all: «We still do not know if the conversations will lead to any result, although the EU prefers an agreement to an escalation,» Rabobank analysts warn in a note.

On the macroeconomic agenda of the day, investors have known The requests for durable goods in April, which show a 6.3% drop compared to the previous monthaccording to the data of the Department of Commerce. A Reuters survey pointed out the figure would fall 7.8% in April. The March data was reviewed down, from 9.2% to 7.6%.

May housing prices will also be published, although the main reference will be perhaps the consumer trusted index of the Board Conference, which will already be known the session. In the week, the main dishes will be the data of May Personal Consumption Expenditure (PCE) and the second estimate of the GDP of the first quarter, as well as the minutes of the last monetary policy meeting of the Fed.

At the moment, today investors have the clues he has given the president of the Fed of Minneapolis, Neel Kashkari, who has taken advantage of a conference in Japan to urge a cautious monetary policy. «A significant increase in tariffs will increase inflation and decrease economic activity, at least in the short term. However, since monetary policy can boost both inflation and economic activity on the rise or decrease, tariffs represent a special challenge for those responsible for monetary policy,» he reflected. «We have to choose: to combat inflation or support economic activity?».

Protagonist values: Nvidia, Salesforce, Apple, Tesla and more

On the business level, the results season faces its last leaflets. So far they have already submitted their accounts 95% of the companies of the S&P 500, and of them 78% have broken market expectations, according to FACTSET data. Among the big names that remain to jump to the fore are especially the technological giant Nvidia (May 28). Analysts expect the AI ​​giant to have generated 43,260 million dollars in income for the first fiscal quarter, which represents an increase of 66% over the same period of the previous year. It is more or less in the company’s forecast range, 43,000 million. The estimation of consensus of benefits is $ 0.88 per share (+44%).

The Macy’s retail chains (May 28) and Costco (May 29) are also about to present their accounts.

Among today’s protagonists, Trump Media shoots more than 10% in pre -opening after the information that suggests that Trump’s social media company planned to raise about 3,000 million dollars to invest in cryptocurrencies such as bitcóin.

Tesla and most of the great mega-caps point to an upward opening. In the case of the electric vehicle manufacturer, it does not seem to affect the collapse of sales in Europe. Tesla sold 7,261 cars in Europe in April, 49% less year -on -yearaccording to the European Association of Automobile Manufacturers (ACEA). This fall occurred despite the fact that total battery electric sales increased 34.1% year -on -year in April.

Tesla has weighed the reputational damage for the link of Elon Musk to the Trump administration. However, today the CEO has taken conscience to get away from politics and focus on its companies. «I must be super focused on /XAI and Tesla (in addition to the launch of Starship next week), since we are implementing crucial technologies,» he said in a post in X.

Apple, the world’s largest capitalization company in the world, rises 1.7% in pre -opening, ending a negative streak of eight consecutive days of falls. On this streak, the punishment has been 6%.

In corporate movements, Salesforce has closed an agreement of approximately 8,000 million dollars to acquire Informatica, data management software company, confirming information that had been advanced by The Wall Street Journal. The cloud software giant is expected to pay $ 25 per action for informatics.

In raw material markets, oil prices are discussed between the slightest concern for the commercial war and the expectation that OPEC+ decides to increase its production at this weekend meeting. The association will probably define the production of July at this meeting, which, and the market anticipates an increase in the production of 411,000 barrels per day, according to the sources consulted by Reuters.

Today the futures of the American West Texas rise 0.29% to $ 61.72 per barrel, while the reference Brent oil in Europe is recorded by 0.23%, at 64.27 dollars.

Today the price of gold drops 1.38% to $ 3,296.71 per ounce.

The euro fell 0.33% against the dollar until leaving the exchange rate at $ 1,1349 for each single currency.

In fixed income, the profitability of the bonds relax, although they remain high. The ten -year bonus pays 4,466%, while the 30 -year bonus offers a yield of 4,974%after last week exceeds 5%.

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