Today’s Midday Market Update: US Markets Closed for Memorial Day as Futures Signal Strong Tuesday Opening

Market Overview: Futures Rise as Trump Delays EU Tariffs

The US stock markets are closed today, Monday, May 26, 2025, in observance of Memorial Day. However, futures trading indicates a strong opening when markets resume on Tuesday, with major index futures showing significant gains after President Donald Trump announced a delay in implementing tariffs on European Union imports.

As of midday, Dow Jones futures were trading 1.08% higher at 42,049 points, S&P 500 futures were up 1.2% at 5,887.25 points, and Nasdaq 100 futures gained 1.4% to reach 21,270 points. This positive movement comes after last week’s declines, when the S&P 500, Dow, and Nasdaq all lost more than 2% for the week amid renewed trade tensions.

Trade Tensions Ease as Trump Extends EU Tariff Deadline

The market rally is largely attributed to President Trump’s weekend announcement extending the deadline for proposed 50% tariffs on European Union imports from June 1 to July 9, 2025. This decision came after a call with European Commission President Ursula von der Leyen, who indicated that “talks will begin rapidly” to address trade concerns.

The delay has provided relief to investors who had been concerned about escalating global trade tensions. Last Friday, markets retreated sharply after Trump had initially proposed the aggressive 50% tariff on EU imports and separately targeted Apple (AAPL) with potential 25% tariffs on iPhones not manufactured in the United States.

Recent Market Performance

Before today’s holiday, the major indexes closed lower on Friday:

– The Dow Jones Industrial Average lost 256.02 points (0.61%) to close at 41,603.07
– The S&P 500 fell 39.19 points (0.67%) to 5,877.94
– The Nasdaq Composite dropped 196.82 points (0.93%) to 21,212.53

Despite Friday’s losses, the broader market has shown resilience in recent weeks. According to Ross Mayfield, investment strategist at Baird, “We’ve had this de-escalation tailwind at the market’s back for like six weeks now — and the market has had one of its best six-week stretches in the last 75 years.”

Notable Stock Movements

Several stocks made significant moves last week that investors should monitor when trading resumes:

Apple (AAPL) fell 3% on Friday after Trump’s tariff threats, closing at $195.54
United States Steel surged 21% after Trump announced a potential “partnership” with Nippon Steel, following the earlier blocking of a takeover bid
GE Vernova reached all-time highs, up 1.21% on Friday and showing remarkable 161.73% year-over-year growth
Tesla (TSLA) has shown impressive 89.76% year-over-year growth despite a slight 0.49% decline on Friday
Meta (META) has gained 31.28% year-over-year despite dropping 1.42% in Friday’s session

Upcoming Market Events

When markets reopen Tuesday, investors will be watching several key events:

1. Major Earnings Releases: Tuesday will see important earnings announcements from HP (HPQ), NVIDIA (NVDA), and Salesforce (CRM) after market close. NVIDIA’s report is particularly anticipated given the company’s central role in the AI boom and its 23.77% year-over-year stock price growth.

2. Economic Data: Tuesday’s economic calendar includes several important releases:
– German GfK Consumer Confidence for June
– French Inflation Rate preliminary data for May
– Eurozone Economic Sentiment and Consumer Confidence reports
– Fed Governor Neel Kashkari is scheduled to speak, which may provide insights into future monetary policy

3. Trade Negotiations: Markets will be closely monitoring any developments in US-EU trade talks following the tariff deadline extension.

Market Outlook

As trading resumes tomorrow, analysts will be watching whether the positive momentum from futures trading carries through to the regular session. The tariff delay has provided temporary relief, but Rick Wedell, president and chief investment officer at RFG Advisory, warns that trade tensions are likely to remain a fixture throughout Trump’s second term.

“It is very important for investors to understand that this lingering trade issue is likely to be here for the duration of this administration,” Wedell noted. “I would just encourage investors to never get lulled into a false sense either way.”

With NVIDIA’s earnings report tomorrow potentially setting the tone for tech stocks, and ongoing developments in trade negotiations, investors should prepare for potential volatility despite today’s positive futures indicators.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.