Trump Delays EU Tariffs, U.S. Stock Futures Rebound While Gold Faces Pressure

Market Overview

Last Friday, Wall Street's major indexes closed lower, with the S&P 500 posting its fourth consecutive loss. Among the “Magnificent Seven” tech giants, Apple led the decline, tumbling 3% in a single day and marking an eight-session losing streak. The pullback in equities was largely driven by former President Donald Trump's renewed tariff threats against the European Union, specifically targeting Apple with potential duties.

In response, the U.S. dollar index sank to a monthly low, Treasury prices rose, and the yield on the 2-year note hit a two-week low intraday. Gold rallied sharply, gaining 2% on safe-haven demand, with weekly gains surpassing 5%.

However, risk appetite improved after Trump announced on Sunday a temporary suspension of the proposed 50% tariffs on EU imports. U.S. equity futures jumped more than 1% early Monday, while gold prices came under short-term pressure. Despite the pullback, most analysts and retail investors remain bullish on gold's medium-term outlook, according to several market surveys.

Key Events to Watch

● Tariff Postponement Until July 9

On May 25, President Trump stated he had a phone call with European Commission President Ursula von der Leyen and agreed to extend the EU-U.S. trade negotiation deadline from June 1 to July 9. This effectively delays the implementation of the proposed 50% tariffs on EU goods until that date.

● U.S.-Japan Trade Stalemate

After two rounds of U.S.-Japan trade negotiations, Washington continues to resist granting Japan any exemptions on automotive and steel tariffs. Japanese Economic Revitalization Minister Ryosei Akazawa is scheduled to meet U.S. Commerce Secretary Howard Lutnick this weekend for a third round of talks. Media reports suggest Akazawa will return to the U.S. on May 30 to meet Treasury Secretary Bessent for a potential fourth round of discussions.

On the Radar

21:00 (GMT+8) – Speech by ECB President Christine Lagarde