After U.S. President Donald Trump announced a delay in the 50% tariffs on the EU until July 9, U.S. stock index futures rebounded in early trading on Monday, alleviating market tensions.
Trump made the decision after a phone call with European Commission President Ursula von der Leyen. He stated that they had a "very pleasant conversation" and agreed to postpone the tariffs, initially scheduled to take effect on June 1, until July 9 to allow for more time for U.S.-EU negotiations.
Boosted by this news, S&P 500 futures rose about 0.8%, and Nasdaq 100 futures increased by 1%. Previously, the market was concerned about a potential escalation in trade tensions, as Trump threatened to impose tariffs of up to 25% to 50% on EU goods and smartphones produced overseas by companies like Apple and Samsung Electronics, which led to a decline in major U.S. stock indices last Friday.
Despite the rebound in the current futures market, traders remain cautious. Investors worry that if negotiations fail to achieve substantial progress, the U.S. might still impose punitive tariffs on EU goods, posing a threat to the global supply chain and technology industry.
It's worth noting that U.S. financial markets are closed on Monday for Memorial Day, so the performance of the futures market is also seen as a "forward-looking reaction" to the current political and trade situation.
This tariff delay temporarily gives the market a breather, but the direction of U.S.-EU trade negotiations in the coming weeks will remain a focus of close attention for global capital markets.
