Stock Market Today: Futures Rally on Trump’s EU Tariff Delay as Markets Reopen After Memorial Day

Market Indexes Poised for Strong Open Following Holiday Weekend

U.S. stock futures are pointing to a robust opening on Tuesday, May 27, 2025, as trading resumes following the Memorial Day holiday. The market is responding positively to President Donald Trump’s announcement that he will delay implementing 50% tariffs on European Union imports until July 9, providing temporary relief to global trade tensions.

As of early morning trading, Dow futures have extended gains to approximately 350 points, while S&P 500 futures are up 60 points and Nasdaq futures are trading 240 points higher. This positive momentum comes after a period of market volatility driven by concerns over international trade policies.

The major market indexes have shown mixed performance in 2025 so far. The S&P 500 is currently at 5,877.94, having decreased 0.67% in the most recent trading session but showing a 6.32% gain over the past month. The Dow Jones Industrial Average stands at 42,091.94, while the tech-heavy Nasdaq Composite is at 21,212.53, having fallen 0.93% in its last session but gaining 9.19% over the past month.

Upcoming Market Events and Earnings Releases

This week features several significant earnings reports that could impact market sentiment. Today (Tuesday), notable companies reporting before the market opens include PDD Holdings (PDD), AutoZone (AZO), and Bank of Nova Scotia (BNS). After market close, investors will be watching results from Box (BOX) and Okta (OKTA).

Wednesday will see reports from Abercrombie & Fitch (ANF), Dick’s Sporting Goods (DKS), and Macy’s (M) before the bell. The highlight of Wednesday’s after-hours reports will be Salesforce (CRM), with analysts expecting earnings of $2.55 per share on revenue of $9.7 billion. Other notable Wednesday reports include HP Inc. (HPQ) and e.l.f. Beauty (ELF).

Thursday brings earnings from Best Buy (BBY), Kohl’s (KSS), and Li Auto (LI) in the morning, while Costco Wholesale (COST) will report after market close. Analysts expect Costco to report earnings of $4.24 per share, representing a 12.2% year-over-year increase, on revenue of $63.1 billion.

Major Stock News and Corporate Developments

Tesla’s European Challenges

Tesla (TSLA) is making headlines as European sales of its vehicles plunged 49% year-over-year in April, with the company selling just 7,261 cars in the region. This significant drop comes despite overall battery electric car sales rising 34.1% annually in Europe. Tesla has faced brand damage in recent months related to CEO Elon Musk’s political involvement with President Trump, which sparked protests at Tesla dealerships across Europe in March. Despite these challenges, Tesla’s stock moved up 3.8% in recent trading, though it remains approximately 40% below its all-time high set in December.

Tech Giants in Focus

Nvidia (NVDA) is attracting investor attention ahead of its upcoming earnings report, with Bank of America reiterating its buy rating on the stock. Analysts cite Nvidia’s “unique leverage to the global AI deployment cycle” as a key factor in their bullish outlook, despite some near-term headwinds. The stock recently jumped 3%, attempting to move decisively above its 50-day moving average for the first time since February.

Microsoft (MSFT) remains a top pick for many analysts following the company’s Microsoft Build conference. Jefferies highlighted five key takeaways, including Copilot’s enhanced reasoning capabilities and strong adoption intent among customers. Microsoft shares have advanced 2.8% in recent trading, putting the stock back above its 50-day and 200-day moving averages.

Apple (AAPL) faced pressure recently, tumbling nearly 4% following its earnings report. While the company reported better-than-expected March-quarter results with earnings of $1.65 per share (up 8% year-over-year) on sales of $95.4 billion (up 5%), investors remain concerned about the impact of potential tariffs on hardware sales and legal challenges to its services business.

Global Economic Factors Influencing Markets

Beyond corporate earnings, several global economic developments are influencing market sentiment. Japan has lost its position as the world’s largest creditor nation for the first time in 34 years, being overtaken by Germany despite posting record overseas assets. Japan’s net external assets reached ¥533.05 trillion ($3.7 trillion), while Germany’s totaled ¥569.7 trillion.

In China, industrial firms saw profits increase at a faster pace in April, with a 3% year-over-year climb, stronger than March’s 2.6% gain. This improvement in earnings is crucial for bolstering business confidence in the world’s second-largest economy.

Oil prices have remained relatively steady, with Brent trading below $65 per barrel and West Texas Intermediate near $61. The market is weighing the prospect of easing trade tensions between the EU and the US ahead of an OPEC+ meeting that will decide on supply policy.

As markets reopen after the holiday weekend, investors will be closely monitoring these developments along with any new announcements regarding international trade policies, which have been a significant driver of market volatility in recent months.