Topline
Futures for the Dow Jones Industrial Average rose in premarket trading Tuesday, as the “magnificent seven” stocks headlined a broader market surge after President Donald Trump announced he would postpone a proposed 50% tariff on the European Union over the weekend.
Nvidia's shares surged Tuesday morning, leading the "magnificent seven" stocks.
Dow futures increased by more than 500 points, or about 1.2%, while S&P 500 futures added 1.3% and the tech-heavy Nasdaq—boosted by gains across the magnificent seven—jumped by 1.5%, after each of the indexes fell by more than 2% last week.
Nvidia led the magnificent seven with a nearly 2.5% increase early Tuesday, as investors appeared optimistic for the firm’s earnings report Wednesday, followed by rising share prices for Apple (1.6%), Tesla (2.2%), Microsoft (1.2%), Meta (2.2%), Amazon (1.5%) and Alphabet (1.5%).
Long-term treasury yields also fell Tuesday, with 30-year bonds falling below 5% after sitting near a two-year high for most of last week, while 10-year yields dropped nearly 0.9%.
On Friday, Trump threatened to impose 50% tariffs on imports from the EU starting June 1, though he later paused the levies for the bloc until July 9, saying Sunday he would “rapidly get together” with the bloc’s leadership to “see if we can work something out.”
Nvidia is scheduled to release its first-quarter earnings report after markets close on Wednesday, becoming the last of the magnificent seven to report results this year. The chip maker is expected to show earnings per share of $0.88 with a revenue of $43.3 billion, according to FactSet, after Nvidia reported earnings of $0.61 per share and revenue of $26 billion over the same period last year.
Shares of Tesla rose Tuesday after CEO Elon Musk signaled last week he would be going “back to spending 24/7 at work,” noting he must be “super focused on X/xAI and Tesla.” Earlier this month, Musk said he was committed to being Tesla’s chief executive for the next five years, a further denial of reports suggesting the automaker’s board was searching for his replacement. Following concerns Musk was spending too much time working as head of the Department of Government Efficiency, Wedbush analyst Dan Ives wrote Musk needed to “take a step back” from the agency, as “Tesla’s future depends on it.”
A surge in trading follows a losing streak for the three major market indexes amid growing deficit concerns and Trump’s increased tariff threats. Trump wrote on Truth Social saying he would push for 50% levies on the EU, claiming the bloc was “taking advantage of the [U.S.]