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Stocks on Wall Street reacted positively on Tuesday after President Donald Trump said over the holiday weekend that he agreed to delay tariffs of 50% on the European Union. The Dow Jones Industrial Average traded 400 points higher, or around 1%. The S&P 500 gained 1.1%, and the Nasdaq Composite popped 1.4%.

New orders for key US-manufactured capital goods fell in April, suggesting business spending on equipment weakened at the start of the second quarter.

Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, tumbled 1.3% last month after an upwardly revised 0.3% gain in March, the Commerce Department’s Census Bureau said on Tuesday. Economists polled by Reuters had forecast these so-called core capital goods orders dipping 0.1% after a previously reported 0.2% drop in March.

An upbeat earnings report by Nvidia Corp. (NVDA) would bode well for a rally in US equities as investors have about $7 trillion parked in cash funds, according to BBVA strategists, as per a Bloomberg report. Institutional positioning in the US technology sector is “undemanding” with hedge funds and mutual funds still substantially underweight, strategist Michalis Onisiforou said. Exposure of trend-following Commodity Trading Advisors (CTA) to the broader stock market is also neutral, while volatility control funds have plenty of room to add to risk, he said.

Xiaomi Corp. reported better-than-expected revenue in the March quarter as it moves to aggressively expand its presence in China’s EV market and grow its core smartphone business, according to a Bloomberg report. Revenue rose to 111.3 billion yuan ($15.5 billion), Xiaomi said in a statement Tuesday, beating the average analyst estimate of 109 billion yuan, the report added. The company recorded 75,869 deliveries of its SU7 sedan during the period. Its Internet of Things division, which sells products ranging from home appliances to wearable tech, was a strong performer with revenue growth of nearly 60% from a year earlier, the report further added.

Apple Inc shares are coming off their longest selloff in more than three years, as escalating attacks from the White House threaten to further erode the company’s profit outlook, suggesting the stock’s struggles this year are far from over, according to a Bloomberg report. Apple is the worst-performing Magnificent Seven stock this year, and its 2025 drop of 22% stands in stark contrast to the 0.5% decline of the Nasdaq 100 Index, the report said. The stock has broken under key moving averages, but isn’t yet at the level that would indicate oversold conditions, based on its 14-day relative strength index. The CBOE Apple VIX, which tracks a market estimate of future volatility for the stock, jumped more than 30% last week.

Nippon Steel is considering offering a so-called golden share in US Steel (X) to the US government in order to finalise its long-sought acquisition of the iconic American firm, Japan’s Nikkei newspaper reported on Tuesday. Deliberations over the idea, which would give Washington the power to veto important management matters, were also reported by Japan’s Kyodo news agency. Neither outlet cited sources for the information.

Yields on government bonds ticked lower across the board in Europe on Tuesday morning, as investors continued to digest US President Donald Trump’s pause on 50% tariffs on the European Union. The yield on German 10-year bunds, seen as a benchmark for the euro zone, was 4 basis points lower by 9:30 a.m. in London. The UK’s 10-year gilt yield dropped 4 basis points, while French 10-year government bond yields were also down by 4 basis points. Italian 10-year bond yields dipped 2 basis points, as their Swiss counterparts moved 4 basis point lower.

Stock futures jumped Tuesday after President Donald Trump said over the holiday weekend that he agreed to delay tariffs of 50% on the European Union. Dow Jones Industrial Average futures added 543 points, or 1.3%. S&P 500 futures climbed 1.5%, while Nasdaq 100 futures popped 1.7%. Trump on Sunday said that he would push back the 50% levy deadline on the EU to July 9 following a request from Ursula von der Leyen, the president of the European Commission. That comes after Trump last week proposed an import tax of 50% on the EU beginning June 1.

Minneapolis Federal Reserve President Neel Kashkari has urged a cautious approach to interest rates, warning that the economic fallout from President Donald Trump’s tariffs remains uncertain.

Speaking in Japan on Tuesday, Kashkari said: “The most recent shock, driven by tariffs and trade policy uncertainty, is different from the prior ones. A large increase in tariffs will increase inflation and decrease economic activity, at least in the short run.”

He noted that tariffs pose a particular dilemma for central banks, as monetary policy tends to move both inflation and growth in the same direction. “We have to pick one: fight inflation or support economic activity?” he said.

Tesla shares rose over 2% after CEO Elon Musk indicated he would refocus on his companies rather than politics.

Posting on X, Musk wrote: “I must be super focused on xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.”

The comment appeared to reassure investors, some of whom had grown concerned that Musk was becoming increasingly distracted by political commentary at the expense of his business ventures, particularly Tesla.

Asia-Pacific markets closed mixed on Tuesday as investors digested US President Trump’s postponed 50% tariffs on EU imports. Japan’s Nikkei 225 rose 0.51% to 37,724.11, with the Topix up 0.64% at 2,769.49. South Korea’s Kospi slipped 0.27% to 2,637.22, while the Kosdaq edged up 0.25% to 727.11.

China’s CSI 300 dropped 0.54% to 3,839.40, though April’s industrial profits rose 1.4% from March’s 0.8%. Hong Kong’s Hang Seng gained 0.43% to 23,381.99. Australia’s ASX 200 climbed 0.56% to 8,407.6, marking a third consecutive gain.

European countries and firms are adjusting to US President Trump’s proposed 50% EU tariffs, now delayed. Markets reacted positively, but analysts warn the threat remains, with potential EU countermeasures. During a state visit to Vietnam, French President Macron secured a deal for 20 Airbus A330neo jets, strengthening European ties in Asia. Meanwhile, Volvo Cars will cut 3,000 jobs amid tariff pressures, having already withdrawn a China-made model from the U.S. China’s industrial profits rose 3% in April, boosted by state support. Additionally, wealthy investors are increasingly storing gold in Singapore as global uncertainty and geopolitical risks continue to escalate.

An upbeat earnings report by Nvidia Corp. would bode well for a rally in US equities as investors have about $7 trillion parked in cash funds, according to BBVA strategists.

Institutional positioning in the US technology sector is “undemanding” with hedge funds and mutual funds still substantially underweight, strategist Michalis Onisiforou said. Exposure of trend-following Commodity Trading Advisors (CTA) to the broader stock market is also neutral, while volatility control funds have plenty of room to add to risk, he said.

“With the institutional length in equities far from exuberance levels,” Onisiforou said the setup favors higher exposure to stocks.

Federal Reserve Bank of Minneapolis President Neel Kashkari doubled down on his case for caution amid uncertainty caused by the trade war and the “paramount” need to defend inflation expectations.

Speaking at a Bank of Japan event in Tokyo on Tuesday, he said there was a “healthy debate” among policymakers about whether to look through the inflation effect of US President Donald Trump’s tariffs as a transitory shock, or view it as a longer-lasting condition.

“It may take months or years for negotiations to fully conclude,” Kashkari said in prepared remarks, noting that levies on intermediate goods take time to pass through, and the risks of inflation expectations becoming unmoored could increase over time.

European sales of Tesla vehicles plunged in April, as the U.S. electric carmaker continues to face reputational damage regionally and rising competition.

Tesla sold 7,261 cars in Europe in April, down 49% year-on-year, according to the European Automobile Manufacturers’ Association (ACEA). That drop came even as overall battery electric car sales rose 34.1% annually in April.

Tesla has faced brand damage over the past few months because of CEO Elon Musk’s political involvement with US President Donald Trump, with protests erupting at Tesla dealerships across Europe in March.

Swiss exports to the US plummeted in April, showing the fallout from President Donald Trump’s tariff policy.

Foreign sales, adjusted for seasonal swings, declined 36% from March, the customs office in Bern said in an e-mailed statement. Imports from the world’s biggest economy fell 15%. That resulted in a trade surplus of 4.6 billion francs ($5.6 billion) — the second largest since at least 2010.

The data come after two months of strong export numbers to that country, suggesting frontloading took place by exporters seeking to get goods into US ports in time to avoid the impact of tariffs that Trump had already threatened to impose on April 2.

France’s inflation rate dropped further below the European Central Bank’s 2% target, reaching a more than four-year low and adding to arguments that borrowing costs can be cut further.

Consumer prices rose 0.6% from a year ago, the weakest pace since December 2020. Analysts surveyed by Bloomberg had estimated a 0.9% advance, matching April’s result.

The subdued data reflect a wider pullback across the 20-nation euro zone, with May readings from the region’s biggest economies all expected to come in below the ECB’s goal for the first time in eight months. Figures from Italy, Germany and Spain are due on Friday before the bloc as a whole publishes its report next week.

Hong Kong’s stock exchange is seeking to launch options that expire within a day as early as the first half of 2026, bringing to the Asian hub an instrument that has driven a boom in US derivatives in recent years.

Hong Kong Exchanges & Clearing Ltd. is planning to start offering “zero-days to expiry” contracts on the Hang Seng Index, according to people familiar with the matter who asked not to be named because the matter is private. The bourse has been consulting with market participants and the feedback has been positive, they added.

A HKEX representative said the exchange will communicate any updates to its product offerings to the market.

Gold held a small decline as demand for haven assets cooled, with investors weighing prospects for improving trade relations between the US and the EU.

Bullion traded near $3,347 an ounce, following a 0.4% loss on Monday, after Brussels said it would accelerate negotiations with Washington to avoid a trans-Atlantic trade war. Both sides have softened their approach after US President Donald Trump initially criticized the bloc for dragging its feet on talks.

Demand for safe assets like gold has been impacted as signs emerge that the White House may be making progress in negotiations with some trading partners. Gold-backed exchange-traded funds registered five straight weeks of outflows since peaking at the highest in more than a year in mid-April, according to Bloomberg calculations.

Hedge funds are ramping up bets in the options market that the South Korean won will mirror the Taiwan dollar’s recent rally against the greenback.

Dollar-won option trading volume spiked to this year’s high last week, according to the Depository Trust & Clearing Corporation data, as speculation grew that Korea and the US discussed the won’s direction in their currency talks. Barclays Bank Plc said there’s been increased demand for put options from hedge funds.

A surge in the Taiwanese dollar this month has reshaped market expectations for Asian currencies. Investors see the won as a likely candidate for comparable gains, as Korea’s trade surplus with the US adds pressure on local authorities to tolerate a stronger currency. The US last year placed Korea on its foreign-exchange monitoring list — which already included Taiwan.

The dollar dropped, extending recent losses, on concern over the impact of higher tariffs on the US economy and the risk of a widening fiscal deficit.

Bloomberg’s gauge of the greenback slipped for a third day, heading for its lowest close since July 2023, on weak demand for US assets.

An index of Asian currencies climbed toward the highest level since October, with the Taiwan dollar advancing for a sixth day.

BYD Co. shares extended losses in Hong Kong trading Tuesday — taking their two-day slide to more than 10% — as last week’s sweeping price cuts stoked concern of another wave of discounting in China’s cutthroat electric car market.

The stock fell as much as 4% in morning trading, following Monday’s 8.6% drop. The selloff was sparked after the EV giant announced cuts of as much as 34% on 22 electric and plug-in hybrid models in China until the end of June.

The move came after the company last month posted its slowest year-on-year growth in vehicle deliveries in more than four years. While April sales rose 21% from a year earlier, that was the smallest monthly gain since August 2020, except for a drop in deliveries in February last year, when the Lunar New Year holiday saw nationwide industry sales contract 22%.

Japan lost its position as the world’s largest creditor nation for the first time in 34 years, despite posting a record amount of overseas assets.

Japan’s net external assets reached ¥533.05 trillion ($3.7 trillion) at the end of 2024, rising about 13% from the previous year, according to data released Tuesday by the Ministry of Finance. While the figure marked an all-time high, it was overtaken by Germany, whose net external assets totaled ¥569.7 trillion. China remained in third place with net assets of ¥516.3 trillion.

Germany’s ascent reflects its substantial current account surplus, which reached €248.7 billion in 2024 thanks largely to a strong trade performance. Japan’s surplus in turn was ¥29.4 trillion according to the finance ministry, equivalent to around €180 billion. Last year the euro-yen rate rose around 5%, exaggerating the increase in German assets versus Japanese in yen terms.

Oil was steady as the market weighed the prospect for easing trade tensions between the European Union and the US ahead of an OPEC+ meeting that will make a decision on supply policy.

Brent traded below $65 a barrel after a quiet session on Monday due to holidays in London and New York, while West Texas Intermediate was near $61. Brussels has agreed to accelerate trade talks with the US, just days after criticism from President Donald Trump.

Global markets have been rattled by Trump’s tariffs and retaliatory measures from targeted countries, including China. Oil has trended lower since mid-January on concerns around the fallout from trade tensions, with a push by OPEC and its allies to restore idled supply adding to headwinds.

China’s industrial firms saw their profits increase at a faster pace in April, as a government trade-in program drove demand for manufactured products in the face of pressure from higher US tariffs.

Industrial profits climbed 3% last month from a year earlier, stronger than a 2.6% gain in March, according to data released Tuesday by the National Bureau of Statistics. For the January-April period, they rose 1.4% year-on-year.

Improving earnings are crucial to bolstering business confidence so that companies become more willing to invest and hire. Bloomberg Economics had forecast industrial profits would drop 1.5% year-on-year in April.

Bank of Japan Governor Kazuo Ueda gave the yen a boost by clearly indicating his intention to continue raising the benchmark interest rate if the economy improves as expected.

“We will adjust the degree of monetary easing as needed” to ensure that the bank achieves its sustainable price goal if incoming data give authorities greater confidence that their economic expectations will be met, Ueda said in a speech at an international conference hosted by the BOJ in Tokyo Tuesday.

The yen rose as high as 142.28 against the dollar immediately after his remarks.

Asia-Pacific markets opened mixed Tuesday as investors continued to assess U.S. President Donald Trump’s delay of 50% tariffs on European Union imports.

Japan’s benchmark Nikkei 225 started the day 0.15% lower while the broader Topix index was flat.

In South Korea, the Kospi index fell 0.15%, reversing course from its three-month high in Monday’s session, while the small-cap Kosdaq was flat in early trade.

Hong Kong markets are poised to open flat with futures tied to the Hang Seng index at 23,200, compared to the benchmark’s last close of 23,282.33.

Futures on Wall Street are maintaining gains from the holiday trade as trading will resume later this evening after the Memorial Day Holiday.

The Dow futures are currently trading with gains of 350 points, while those on the S&P 500 and Nasdaq are trading 60 points and 240 points higher respectively.

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Welcome to CNBC-TV18’s Live coverage of the global equities and Wall Street, where trading will resume after the Memorial Day holiday.

Futures are seeing a jump after a delay in the EU tariffs by President Trump.

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