Market Pulse – Live UpdatesMarket Indexes Surge on Trade Tension Relief
U.S. stock futures are pointing higher on Monday, May 26, 2025, as markets react positively to President Donald Trump’s decision to delay aggressive tariffs on European Union imports. S&P 500 and Nasdaq 100 futures have advanced more than 1% in early trading, signaling a strong open when markets resume trading on Tuesday after the Memorial Day holiday.
The previous trading session on Friday saw all three major U.S. indexes close lower after Trump threatened 50% tariffs on the European Union and warned Apple about potential levies on iPhones. The S&P 500 shed 0.67% to end at 5,802.82, while the tech-heavy Nasdaq Composite dropped 1% to 18,737.21. The Dow Jones Industrial Average lost 256.02 points, or 0.61%, closing at 41,603.07.
Asian Markets React to U.S. Trade Policy Shifts
Asian markets showed mixed performance on Monday as investors assessed the implications of Trump’s tariff postponement. South Korea’s Kospi index led gains with a remarkable 2.02% increase, closing at 2,644.40, its highest level since February. Japan’s Nikkei 225 also performed strongly, ending 1% higher at 37,531.53.
Meanwhile, mainland China’s CSI 300 index lost 0.57% to end at 3,860.11, while Hong Kong’s Hang Seng Index fell 1.45%. India’s benchmark Nifty 50 moved up 0.54% while the BSE Sensex rose 0.48%.
Currency markets have also responded to the shifting trade landscape, with the U.S. dollar index declining 0.39% to 98.725, its weakest level since December 2023.
Major Stock Movements and Corporate News
Apple (AAPL) remains in focus after falling 3% on Friday following Trump’s threat that iPhones sold in the U.S. must be made domestically or face “a tariff of at least 25%.” Investors will be watching closely to see if the stock rebounds after the holiday weekend.
United States Steel (X) surged 21% on Friday after Trump announced the company would form a “partnership” with Nippon Steel, a significant development after the Japanese company’s earlier bid to buy its U.S. rival had been blocked.
In the tech sector, WiseTech Global has made headlines after announcing a $2.1 billion takeover of U.S. cloud firm E2open, while uranium miners have seen sharp gains following a U.S. executive order boosting nuclear energy.
Upcoming Market Events and Earnings Releases
This week features several high-profile earnings reports that could significantly impact market sentiment. NVIDIA (NVDA), a key player in the AI chip market, is scheduled to report earnings after market close on Tuesday, May 27. Other notable companies reporting this week include HP (HPQ) on Tuesday, and Salesforce (CRM) and Synopsys (SNPS) on Wednesday.
Later in the week, investors will be watching for results from Costco Wholesale (COST), MongoDB (MDB), UiPath (PATH), and Zscaler (ZS), all reporting on Thursday.
Market Outlook and Analyst Perspectives
Analysts note that Trump’s fresh tariff threats have rattled markets “after a period of relative calm, during which markets had priced in a more constructive outlook for trade negotiations,” according to Mathieu Racheter, head of equity strategy research at Julius Baer.
The pattern of making trade threats before backtracking has created a “roller coaster ride” of de-escalating and re-escalating tariff tensions that experts believe is likely to be a permanent fixture of Trump’s second term.
Looking ahead, market strategists recommend a diversified approach across regions, given the wide range of potential outcomes and elevated policy uncertainty surrounding trade negotiations.
As investors navigate these uncertain waters, the focus remains on how corporate earnings will hold up amid trade tensions and whether the market can maintain its upward momentum in the face of policy volatility.