Newscasts - US stocks end sharply higher on Trump's tariff reprieve

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27/05/2025 23:15

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Source: 'Reuters - Business videos'

Description: The S&P 500 is now within 3.6% of its record closing high reached on February 19, having plunged as much as 18.9% below that level in the wake of Donald Trump's erratic tariff announcements, which have whipsawed markets for much of the President's second term. Lisa Bernhard has more.

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Video Transcript:

Wall Street surged on Tuesday with the Dow adding 1.75%, the S&P 500 climbing 2%, and the NASDAQ rising about 2.5%. Investor risk appetite was buoyed by US President Donald Trump's latest tariff respite and an unexpected jump in consumer confidence. In his latest move, Trump backed down from his 50% tariff threat against the European Union and restored a July 9 deadline to allow time for negotiations. Ross Mayfield is Investment Strategist at Baird.

Obviously, the big tailwind is the removal of the EU trade overhang that kind of popped up at the end of the previous week. This bull market off of the April 8 lows has really been built on trade de-escalation first the 90-day pause, then some truces with China and so the EU spat threatened that a little bit. And the removal of that overhang, the Administration's response to the market, I think, has people feeling pretty good today.

On the economic front, a surge in current-month consumer confidence added momentum to Tuesday's rally. Airlines and mega-cap tech-related growth stocks were the clear outperformers. That includes NVIDIA, as the AI powerhouse closed more than 3% higher, one day before it reports quarterly results. While shares of Temu-parent PDD Holdings dropped more than13.5% after reporting a 47% fall in first-quarter profit and missing quarterly revenue estimates. Tuesday's other laggards included VeriSign and AutoZone, with shares of each shedding about 3.5%.