FX.co ★ US Stocks Rise on US-EU Trade Optimism

U.S. stocks surged on Tuesday as markets reopened after the extended weekend. The rise was driven by a decrease in trade tensions and shifts in the global bond market. President Donald Trump announced a postponement of the proposed 50% tariff on EU imports from June 1 to July 9, responding to a request by European Commission President Ursula von der Leyen. This decision rekindled hopes for a trade resolution, enhancing investors' risk appetite. Furthermore, an announcement from Japan's finance ministry suggested a potential reduction in government bond issuance, which helped to stabilize recent volatility in its debt market. This environment directed investors toward U.S. assets, thereby increasing demand for equities. As a result, the S&P 500 advanced by 1.2%, the Dow gained 1%, and the Nasdaq 100 increased by 1.5%. Tesla saw a rise of over 2% after Elon Musk indicated he would concentrate more on his business ventures. Trump Media experienced an 11% increase following reports of its plans to raise $3 billion for cryptocurrency investments. U.S. Steel continued its upward momentum from Friday, receiving a boost from developments indicating stronger corporate ties between the U.S. and Japan.