Dow Jones Soars 600 Points as EU Flirts With Trade Truce—Traders Cheer (For Now)
Wall Street’s old-guard index gets a sugar rush as Europe extends an olive branch. Cue the predictable rally—because nothing fuels gains like the faint whiff of diplomatic progress.
Funny how 600-point pumps still move the needle when crypto’s doing that before breakfast. Traders, ever the opportunists, pile into equities while quietly eyeing their cold wallets.
Dow Jones Industrial Average heatmap | Source: TipRanks
Technology stocks led the gains in the Dow, with Nvidia rising 3.26% ahead of its earnings report on Wednesday. This came despite recent warnings that the company could face a $5.5 billion revenue hit due to potential restrictions on AI chip exports to China. Still, traders remain bullish, expecting Nvidia to post record revenues that beat expectations.
Apple was also up 2.43%, despite Trump’s earlier threats to impose a 25% tariff on its smartphones. TRUMP later explained that this would also apply to Samsung, Apple’s main competitor in the mobile market.
Trump, EU, hopeful about trade talks
The broader rally in equities was driven by Optimism on the trade front. President Trump softened his stance on tariffs and praised the EU for agreeing to fast-track trade negotiations with the United States. The bloc is aiming to avoid 50% mutual tariffs, which Trump has delayed until July 9.
“This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America,” Trump posted on Tuesday. “They will BOTH be very happy, and successful, if they do!!!”
The negotiations, led on the EU’s side by trade chief Maroš Šefčovič, will focus on key areas such as semiconductors, automobiles, pharmaceuticals, and aluminum. In parallel, the EU and the U.S. will also tackle tariffs and non-tariff barriers. The two biggest economies in the world now have six weeks to resolve their disputes, unless Trump extends the deadline further.
