U.S. Stocks Surge 1-2% on EU Trade Talks Extension

On the night of May 27, U.S. stocks opened strongly, with all three major indices—Nasdaq, Dow Jones, and S&P 500—experiencing significant gains. The Nasdaq Composite Index led the rally, surging by nearly 2%, while the Dow Jones Industrial Average and S&P 500 both rose by more than 1%. This bullish sentiment was driven by positive developments in trade negotiations between the United States and the European Union.

President Trump announced that the EU had requested an extension of the tariff negotiation deadline until July 9, a request he agreed to. This news was well-received by the market, as it indicated progress in the ongoing trade discussions. Trump described the conversation with EU Commission President Ursula von der Leyen as "very pleasant," and von der Leyen expressed optimism about reaching a deal, stating that the EU was ready to accelerate trade negotiations with the U.S.

German Chancellor Olaf Scholz echoed this sentiment, emphasizing that Germany and other EU nations did not want the tariff dispute to escalate. He noted that increased tariffs would harm German interests and that Germany would retaliate if necessary. Scholz also mentioned that Germany was prepared for any outcome, including the failure of EU-U.S. trade negotiations.

Meanwhile, gold prices experienced a significant drop, with both spot and futures prices declining. London gold fell by 1.38%, trading at $3,295.99 per ounce, while COMEX gold futures decreased by 1.38%, trading at $3,295.9 per ounce. This decline in gold prices was likely influenced by the strengthening U.S. dollar, which rose by more than 0.50% during the day, trading at 99.49. The inverse relationship between the dollar and gold prices was evident, as the precious metal lost its appeal as a safe-haven asset in the face of a bullish market sentiment.

In the technology sector, large-cap stocks performed well. Tesla's shares surged by more than 5%, with CEO Elon Musk announcing that he had returned to a 7x24-hour work schedule, sleeping in meeting rooms, server rooms, or factories. Informatica saw a near 6% increase after Salesforce announced its acquisition at $25 per share. NVIDIA and Google both rose by over 3% and 2%, respectively, while Apple, Microsoft, Amazon, and Facebook all gained more than 1%.

Chinese companies listed in the U.S. saw mixed results. The Nasdaq Golden Dragon China Index, which tracks the performance of Chinese companies listed on the Nasdaq, fell by 0.22%. Manbang Group surged by 6%, while NetEase rose by more than 2%. In contrast, Xpeng and NIO both experienced declines, with Xpeng falling by more than 4% and NIO by more than 3%.

Oil prices also declined, with NYMEX WTI crude oil falling by 0.85% to $61.01 per barrel, and ICE Brent crude oil decreasing by 0.83% to $63.59 per barrel. This drop in oil prices was likely influenced by the overall market sentiment and the strengthening U.S. dollar.