Dow Jones: Nike, Caterpillar, Goldman Sachs Lead as Blue Chips Surge in US Market Today

Dow Jumps 500 Points as Trump Delays EU Tariff; Tech and Consumer Stocks Lead Gains

U.S. stocks surged Tuesday, with the Dow Jones Industrial Average climbing over 500 points after President Donald Trump postponed a planned 50% tariff on European Union imports. The decision, which followed a direct request from the European Commission president, helped ease investor concerns about trade tensions, sending Wall Street higher following the Memorial Day holiday.

The Cboe Volatility Index dropped over 12%, falling to 19.43 and nearing its long-term average, signaling easing investor anxiety. Treasury yields also declined, reflecting renewed demand for bonds as traders weighed the implications of Trump’s tariff reprieve.

How Did Major Indexes and Economic Data Support the Rally?

The S&P 500 and Nasdaq joined the Dow in posting solid gains, with all three benchmarks rebounding from last week’s losses driven by tariff worries. A stronger-than-expected U.S. consumer confidence report for May further supported sentiment, indicating resilience in household spending expectations.

National Economic Council Director Kevin Hassett told CNBC that the administration could announce “a few more deals this week,” which further fueled optimism. The easing of trade risks, combined with upbeat data, contributed to the market’s upbeat tone.

Which Stocks and Sectors Moved the Most on Tuesday?

Tech and consumer discretionary sectors led the charge. Tesla climbed 4% after Elon Musk announced a pivot away from politics to refocus on his companies. Nvidia, AMD, Apple, and Microsoft also rose more than 1.5% each, continuing to benefit from robust AI-driven momentum.

Dow gainers were led by Nike (+3.5%), Nvidia (+3.1%), and Goldman Sachs (+2.2%), while American Express, Caterpillar, and Amgen each added over 2%. Amazon and Disney advanced nearly 2%, supported by renewed confidence in consumer demand and digital growth.

Defensive names lagged, with UnitedHealth, McDonald’s, and Coca-Cola all posting modest losses. Boeing and Procter & Gamble also slipped slightly, reflecting a broader shift out of safe-haven sectors.

What’s the Market Outlook as Traders Eye Earnings and Fed Policy?

Despite Tuesday’s rally, analysts cautioned against overconfidence. Vital Knowledge’s Adam Crisafulli noted that while Trump’s most aggressive tariff threats may not materialize, significant import taxes have already been imposed, and risks around fiscal policy and yields persist.

Looking ahead, traders will monitor earnings reports from Okta after the bell, followed by results from Nvidia, Macy’s, and Costco later in the week. With over 95% of S&P 500 firms having reported, nearly 78% have beaten expectations, underscoring earnings strength.

The near-term market outlook remains constructive, but attention will stay fixed on trade developments, Federal Reserve commentary, and inflation signals as investors gauge the sustainability of the rebound.

More Information in our Economic Calendar.