Dow Surges 640 Points as EU-U.S. Trade Talks Gain Momentum
U.S. stocks rallied on Tuesday, May 27, after signals of easing trade tensions between the United States and the European Union sparked renewed investor optimism. The Dow Jones Industrial Average jumped 640 points—or 1.54%—to close at 42,243, marking one of its strongest sessions in recent weeks.
The broader market followed suit. The S&P 500 rose 109 points (1.88%) to reach 5,911, while the tech-heavy Nasdaq Composite soared 440.52 points (2.35%) to 19,177.
Technology stocks drove much of the gains, with Nvidia climbing 3.26% ahead of its highly anticipated earnings report scheduled for Wednesday. Investors shrugged off concerns over possible export restrictions to China that could impact the chipmaker’s revenue by as much as $5.5 billion. Instead, the market appeared to be betting on another blockbuster quarter.
Apple shares also rose 2.43%, even after former President Donald Trump floated the possibility of a 25% tariff on its smartphones. In follow-up remarks, Trump clarified that such a tariff would also target Samsung, Apple’s key rival, signaling a broader approach rather than a specific company crackdown.
The rally was largely driven by a shift in tone from the Trump camp on trade. In a statement posted Tuesday, Trump applauded the EU’s willingness to fast-track trade negotiations and indicated a more cooperative stance.
“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,” he wrote. “They will BOTH be very happy, and successful, if they do!!!”
The EU, led by trade commissioner Maroš Šefčovič, has entered talks with the U.S. to address long-standing issues across sectors including semiconductors, automobiles, pharmaceuticals, and aluminum. The immediate goal is to prevent the imposition of steep 50% reciprocal tariffs, which Trump has postponed until July 9.
The two economic giants now have a six-week window to reach a resolution, unless an extension is granted. Alongside sector-specific talks, negotiators are also expected to tackle tariff structures and non-tariff barriers that have long complicated transatlantic trade.