SPX: S&P 500 Rebounds with 2% Gain as Markets Cheer Trump’s Tariff Delay on Europe Goods

Propose a tariff, then postpone it — boom, stocks go up. That’s what’s been driving the ebbs and flows of the stock market lately. On Tuesday, it was the latter one doing the lifting.

🚀 Stocks Pump on Snooze Button

• The S&P 500 (SPX) surged 2% on Tuesday, fueled by President Trump’s decision to delay the massive 50% tariff on European imports. Markets had braced for a June 1 shock, but now they’ve got until July 9 — a five-week window that traders are treating as a green light.
• The delay sent a jolt of optimism through global equities — not just US stocks — with investors rushing back into risk assets. From German automakers to French luxury giants, European-exposed sectors got an unexpected tailwind. Wednesday’s session, however, failed to spark momentum across European bourses.
• Tuesday’s rally was likely prompted by traders hoping this tariff delay would turn into a tariff exemption. A tariff delay doesn’t solve anything long-term, but it gives the bulls room to breathe and reposition in anticipation of more good news.

😎 Announce + Delay = Profit???

• The market has seen this show before — announce a policy shock, let traders panic, then roll it back just in time to spark a rally. On Tuesday, that script worked perfectly as investors flooded back into positions previously under pressure.
• Tech and industrials led the rebound, both seen as vulnerable to a full-scale EU trade war. Their sharp rebound shows just how sensitive this market is to headlines — especially posts from Donald Trump’s Truth Social account.
• Trump said earlier he’s already seeing “positive” progress in US-EU trade talks but didn’t say what that progress looks like. Traders heard just one thing: crisis averted, at least for now.

🛒 S&P 500 Rides 20% Gain

• Tuesday’s move extended the S&P’s gains to 20% since the April 8 low — a dramatic bounce powered by softening inflation, solid earnings, and now this geopolitical breather. But the path ahead still hinges on macro clarity.
• All eyes now shift to the next round of data — including PCE inflation, GDP, and Fed speakers — all of which could shift the narrative quickly. Don’t forget also the looming market-moving event this week — Nvidia NVDA reports earnings after the closing bell Wednesday.
• With volatility easing and risk appetite recovering, traders are treating the tariff delay as a free pass to chase performance. But the true test comes in July — when that 50% hammer either falls or gets shelved again.