US STOCKS-Wall St set to open sharply higher after long weekend on Trump's trade reprieve

By Shashwat Chauhan and Kanchana Chakravarty

May 27 (Reuters) - Wall Street was poised for a strong open on Tuesday after U.S. President Donald Trump dialed back his threat of tariffs on EU imports, defusing trade tensions between the United States and the European bloc and boosting investor confidence.

On Sunday, Trump rolled back his threat to impose 50% tariffs on imports from the EU next month, restoring a July 9 deadline to allow for talks between Washington and the 27-nation bloc to arrive at a deal.

He had said on Friday that he was recommending a 50% tariff effective June 1 and expressed frustration that trade negotiations with the EU were not moving quickly enough.

"The negotiating style of President Trump is known by now. It will come at you hard and then they'll be able to pull back a little bit," said Joe Saluzzi, co-head of equity trading at Themis Trading.

Asian and European markets were mixed after rising on Monday, although moves in U.S. assets were more pronounced as traders returned after the long Memorial Day weekend.

At 08:30 a.m. ET, Dow E-minis YMcv1 rose 529 points, or 1.27%, S&P 500 E-minis EScv1 gained 80 points, or 1.38%, and Nasdaq 100 E-minis NQcv1 were up 312.5 points, or 1.49%.

Most megacap and growth stocks jumped in premarket trading. Apple AAPL.O was up 1.9%, Alphabet <GOOGL.O> climbed 1.7% and Tesla TSLA.O rose 2.4%.

Trump Media & Technology Group DJT.O soared 9.6% after a media report said Trump's social media firm planned to raise about $3 billion to spend on cryptocurrencies such as bitcoin.

Shares of semiconductor industry bellwether Nvidia NVDA.O kicked off the week with a 2.5% rise. The company is slated to report quarterly earnings after markets close on Wednesday.

Long-dated U.S. Treasury yields dipped, while those on the 30-year note US30YT=RR were set for their biggest one-day fall since mid-April, mimicking a steep price rally in longer-term Japanese debt.

In economic data, minutes from the U.S. Federal Reserve's last policy meeting are scheduled to be released on Wednesday.

A number of Fed officials are expected to speak through the week. Minneapolis Fed President Neel Kashkari on Tuesday called for holding interest rates steady until there was clarity on how higher tariffs impact inflation.

Personal Consumption Expenditure data - the Fed's favored inflation indicator - for May and a second estimate of first-quarter GDP are also scheduled to be released later this week.

Wall Street witnessed sharp weekly losses on Friday as worries about mounting U.S. debt and Trump's latest trade policy shakeup sparked a broad selloff. His sweeping tax bill - which is expected to substantially expand federal debt - passed a critical House vote last Thursday.

The S&P 500 .SPX is about 6% from record highs, although it has rebounded sharply from April lows as easing trade concerns and tame inflation data spurred a risk-on rally.

Temu-parent PDD Holdings PDD.O dropped 19% after missing Wall Street's first-quarter revenue estimates.