LIVE MARKETS-S&P 500 index posed to take a leap after Trump tariff reprieve

ReutersMay 27, 2025 1:07 PM

U.S. equity index futures green; All up >1%
Apr durable goods -6.3% vs -7.8% estimate
Apr durable goods ex-transports 0.2% vs -0.1% estimate
Euro STOXX 600 index up ~0.4%
Dollar up; bitcoin ~flat; crude slips; gold slides >1%
U.S. 10-Year Treasury yield falls to ~4.47%

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S&P 500 INDEX POSED TO TAKE A LEAP AFTER TRUMP TARIFF REPRIEVE

U.S. equity index futures are jumping on Tuesday after President Donald Trump rolled back his threat of steep tariffs against the EU and tensions between the United States and the European bloc cooled as traders returned after the Memorial Day break.

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

This after the major averages all posted a losing week, and the S&P 500 index .SPX tested a key support zone on Friday:

On Friday the SPX hit an intraday low of 5,767.41.

With this, it fell into the May 12 gap which spanned from 5,786.08 down to 5,720.20 on a weekly basis, 5,691.69 on a daily basis, and 5,674.52 on an hourly basis. Additionally, the 200-DMA, as well as the Fibonacci-based 233-DMA, ended Friday in the 5,773-5,733 area.

The benchmark index then rallied to finish at 5,802.82.

Bulls were looking for the support zone to provide fertile ground for a resumption of the advance. And now on Tuesday, e-mini S&P 500 futures EScv1 are jumping around 70 points, or around 1.25%, in premarket trade.

On an SPX thrust above the May 19 high at 5,968.61, the SPX can, in due course, attempt to challenge its highs in the 6,099-6,147 area.

Additionally, the long-term resistance line from the 1929 high, which capped strength December-February, resides around 6,225 in May.

In the event, the May 12 gap is filled, the 50-DMA ended Friday around 5,585. The May 7th low was at 5,578.64.

(Terence Gabriel)

EARLIER ON LIVE MARKETS:

WHAT IF 50% TARIFFS ON EUROPE ARE HELD... CLICK HERE

EUROPEAN BANK EARNINGS KEEP RE-RATING ON TRACK CLICK HERE

FAVOUR EXPOSURE TO CABLES IN ENERGY TRANSITION - BARCLAYS CLICK HERE

STOXX 600 CONTINUES HIGHER AFTER EU TARIFF PAUSE CLICK HERE

EUROPE BEFORE THE BELL: FUTURES FLAT, FTSE PLAYS CATCH UP CLICK HERE

CHAOTIC US TRADE SHIFTS LEAVE MARKETS WARY CLICK HERE

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