On Monday, May 26, while U.S. markets were closed for Memorial Day, U.S. stock index futures posted notable gains, highlighting a Dow Jones and Nasdaq surge.

• 📈 Dow Jones Futures (DJIA): +1.08%
• 📈 Nasdaq 100 Futures: +1.52%
• 📈 S&P 500 Futures: Around +1%

The rally followed news that Donald Trump delayed the implementation of a 50% tariff on European goods from June 1 to July 9, raising hopes for eased trade tensions.

Educational Insight: What Are Futures Markets and Why Do They Matter?

Futures markets are a type of derivatives market where investors can lock in the price of an asset (e.g., index, stock, or commodity) for a future date.

🔍 Key Uses of Futures Markets:

• Gauging investor sentiment and expectations
• Risk management tool for corporations and funds
• Early signal for market direction before official open

Impact of Trump’s Decision on Market Sentiment

On Sunday, Trump announced via Truth Social that the planned 50% tariffs on EU goods would be postponed until July 9. Initially, these tariffs were set to begin on June 1.

Futures markets responded positively, reflecting investor optimism over the potential de-escalation of trade tensions.

UBS Chief Economist Paul Donovan noted, “Trump’s repeated reversals are becoming predictable to markets,” but added that such unpredictability still elevates the risk premium.

This delay encouraged investors to prepare for a bullish start on Tuesday, particularly in tech stocks.

Read More: Oil Prices Fall Amid Trump Policy Uncertainty

All Eyes on Nvidia and Salesforce Earnings This Wednesday

✅ Nvidia (NVDA)

• Projected revenue: $43.17 billion
• Adjusted EPS: $0.73
• Annual revenue growth: 66%
• Facing export restrictions on H20 chip sales
• Secured a $40B deal with Oracle to supply AI chips

✅ Salesforce (CRM)

• Projected revenue: $9.75 billion
• Adjusted EPS: $2.55 (4.5% YoY growth)
• Key focus: Agentforce platform and sustained cloud service growth

📌 Both earnings reports will be released after the market closes on Wednesday, with Tuesday expected to be an active trading day for these stocks.

Conclusion: Opportunities and Risks in Focus

🔹 Opportunities:

• Temporary relief in U.S.–EU trade tensions gives markets breathing room
• Futures markets are signaling a bullish open on Tuesday
• Nvidia and Salesforce earnings may boost confidence in tech sector

🔸 Risks:

• Tariff threats remain active, only temporarily postponed
• Trump’s policy volatility continues to elevate market risk
• Profit pressure remains for some companies like Nvidia due to export limitations

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