The New York stock market rose sharply on Tuesday, after reopening from the holiday.
Investor sentiment improved over the weekend as trade negotiations between the U.S. and the European Union (EU) gained traction, and U.S. President Donald Trump agreed to delay EU tariffs for a month until July.
The shift from tariff tensions to negotiations fueled a surge in the New York stock market, with M7 big tech companies leading the charge.
Markets Surge Around 2%
Following the Memorial Day closure on Tuesday, the New York stock market posted substantial gains across the board after its reopening.
The Dow Jones Industrial Average breached the 42,000 mark, while the S&P 500 and Nasdaq reclaimed 5,900 and 19,000 respectively.
The Dow rocketed 740.58 points (1.78%) to close at 42,343.65.
The S&P 500 leaped 118.72 points (2.05%) to 5,921.54, and the Nasdaq skyrocketed 461.96 points (2.47%) to 19,199.16.
The Russell 2000, comprising 2,000 small and mid-cap stocks, recorded the largest gain, soaring 50.55 points (2.48%) to 2,090.40.
The CBOE Volatility Index (VIX), Wall Street’s fear gauge, plummeted 1.61 points (7.83%) to 18.96, dipping below the psychological resistance level of 20.
This significant drop indicates that investor anxiety significantly subsided.
M7 Leads the Charge
The M7 big tech companies spearheaded the market’s upward trend.
Tesla stood out with a particularly impressive performance.
Tesla stock price surged as CEO Elon Musk pledged to dedicate himself 24/7 to company management.
Even negative news that European sales were halved last month could not deter investor optimism about Musk’s return to management.
Tesla’s stock surged 23.55 USD (6.94%) to 362.89 USD.
Nvidia also saw gains exceeding 3% ahead of its quarterly earnings report scheduled to be released after market close on Wednesday. Nvidia’s shares jumped 4.21 USD (3.21%) to 135.50 USD.
During Nvidia’s quarterly earnings announcement, investors are expected to focus on the impact of export controls on H20 semiconductors to China and updates on Blackwell semiconductor supply.
Apple bounced back from Trump’s tariff shock, closing up 4.94 USD (2.53%) at 200.21 USD, reclaiming the 200 USD mark in just one day.
Apple, which had fallen sharply on May 23 due to Trump’s threat of a 25% tariff on imported smartphones, rebounded fueled by bargain hunting and optimism surrounding a potential U.S.-India trade deal.
Microsoft (MS) climbed 10.51 USD (2.33%) to 460.69 USD, while Alphabet rose 4.39 USD (2.59%) to 173.98 USD.
Amazon closed up 5.03 USD (2.50%) at 206.02 USD, and Meta Platforms finished at 642.32 USD, gaining 15.26 USD (2.43%).
CoreWeave’s Meteoric Rise Continues
AI cloud company CoreWeave extended its remarkable upward trajectory.
CoreWeave’s stock surged 21.23 USD (20.66%) to 123.97 USD.
After experiencing a failure in its initial public offering (IPO) by closing at its IPO price of 40 USD on March 28, the company saw its stock price explode by nearly 210% in about two months.
However, market experts are urging caution amid this dramatic surge.
Barclays downgraded its recommendation on CoreWeave from overweight (buy) to equal weight (neutral), citing limited short-term upside potential following the recent rally.
Yet, Barclays raised its target price from 70 USD to 100 USD.
Temu and DJT Face Steep Declines
Shares of Pinduoduo (PDD) Holdings, parent company of Chinese e-commerce platform Temu, and Trump’s social media company Trump Media (DJT) both experienced sharp declines.
PDD’s American Depositary Receipts (ADR) plummeted 16.26 USD (13.64%) to 102.98 USD following disappointing first-quarter results.
DJT stock tumbled as Trump announced plans to raise 2.5 billion USD for Bitcoin purchases, part of a broader strategy to promote cryptocurrency.
DJT shares fell 2.67 USD (10.38%) to 23.05 USD.
