Markets
Luke Kawa

Stocks jump on US-Europe trade truce

US stocks enjoyed a strong start to the shortened week after Sunday’s news that President Donald Trump delayed boosting tariffs on imports from Europe to 50%.

The S&P 500 gained 2%, the Nasdaq 100 rose 2.4%, and the Russell 2000 ended up 2.5% on Tuesday.

The S&P 500’s advance-decline line was decisively in favor of the winners, which outnumbered losers by 437.

All S&P 500 sector ETFs rose, with consumer discretionary and tech outperforming.

Semiconductor stocks broke their seven-session losing streak, with Nvidia putting in a strong advance ahead of earnings on Wednesday amid reports that it has a new AI chip tailor-made for sale to China ready to enter mass production next month.

Heavily shorted tech stocks received a big boost during the risk-on mood, with SoundHound AI a standout in the cohort after being initiated with a buy rating at Piper Sandler.

No one’s barbecue beat AMC’s Memorial Day weekend, which saw the theater chain book record revenues for the holiday thanks to “Lilo & Stitch” and “Mission: Impossible — The Final Reckoning.”

Southwest surged as investors cheered news that passengers will hate: the end of its “bags fly free” policy beginning tomorrow.

Salesforce reached an agreement to buy cloud data management company Informatica in an all-stock deal for $8 billion, fueling a rally in the acquired company toward the proposed purchase price.

And Tesla spiked even though its European sales are doing the exact opposite.

UnitedHealth was among the S&P 500’s rare losers on the day, giving back ground as retail traders’ love affair with the stock looks to have waned.

Trump Media & Technology Group tumbled double digits after announcing a plan to sell stock to buy bitcoin.

And PDD Holdings, owner of Temu, plunged after posting an ugly first-quarter earnings report.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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