LIVE MARKETS-Wall Street indexes reach for the sunlight

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WALL STREET INDEXES REACH FOR THE SUNLIGHT

After a long weekend, Wall Street indexes are green and climbing toward the sun on Tuesday with all three major averages gaining ground and Nasdaq .IXIC leading the charge as investors showed some relief after U.S. President Donald Trump dropped his threat to impose 50% tariffs on European Union imports from next month.

After pulling back on Friday's threat during the weekend, Trump said on Tuesday that the EU's move to set up trade meetings was positive and that he hoped Europe would "open up" to trade with the U.S.

Another positive on Tuesday was a May consumer confidence number which came in above consensus expectations at 98 vs 87, according to the Conference Board.

Among the S&P 500's 11 major industry sectors all are advancing with heavyweight tech .SPLRCT and consumer discretionary .SPLRCD rising most.

But while traders looked relieved, Federal Reserve Bank of Minneapolis President Neel Kashkari sounded a note of caution and called for keeping interest rates steady until there is more clarity on how higher tariffs affect inflation, warning against "looking through" the impact of such supply price shocks.

Fed staffers have scrambled since January to decipher what Trump administration trade policies will mean for the economy, with published tallies of potential income losses, inflation estimates running as much as 2 percentage points higher, and breakdowns showing state-by-state winners and losers.

Looking ahead, hotshot Nvidia's NVDA.O earnings report, due on Wednesday after the close, may be one of the most crucial events for the market this week.

Here is your morning snapshot from 1018 ET/1418 GMT

(Sinéad Carew)

EARLIER ON LIVE MARKETS:

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

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