Closing Recap 

U.S. stock futures are up in holiday-thinned trading after President Trump threatened and then delayed new tariffs on the EU; Asian markets were mixed, European stocks cheered the tariff delay, while oil is up slightly and gold has retreated as focus shifts to Fed speakers and upcoming PCE inflation data. 

Key Takeaways 

• Holiday Trading, Futures Mixed: U.S. and UK markets closed for holiday, leading to light volume. Futures show mixed signals after a volatile weekend of tariff headlines. 
• Trump EU Tariff Reversal: President Trump proposed a 50% tariff on EU goods Friday, then backtracked Sunday, delaying implementation until July 9th to allow for negotiations, providing temporary market relief. 
• Last Week’s Market Reversal: Major U.S. indices faltered last week (Dow -2.2%), snapping a strong rally, as a U.S. credit downgrade and renewed broad tariff threats soured sentiment. 
• Dollar Under Pressure: The U.S. dollar remains weak, near one-month lows, pressured by negative trade headlines and prospects of Fed rate cuts, even as positive developments (like the EU tariff delay) emerge. 
• Fed Speakers & PCE Data Key This Week: With trade deals elusive beyond initial agreements, markets will focus on upcoming Fed commentary and Friday’s PCE inflation report for policy clues. Fed’s Kashkari struck a hawkish tone. 
• Oil Up Slightly, Gold Dips: Oil prices are modestly higher, while gold has eased as immediate trade tensions with the EU receded and progress in U.S.-Iran talks was noted. 
• Asian Markets Mixed, Europe Rallies: Asian indices saw varied performance; European stocks surged on the EU tariff delay. 

Market Overview 

Global markets are navigating a holiday-thinned session with U.S. and UK financial markets closed for Memorial Day and the Spring Bank Holiday, respectively. U.S. stock futures are indicating a mixed start after a weekend dominated by another round of tariff-related pronouncements from President Trump. On Friday, Trump threatened to impose a steep 50% tariff on European Union goods, significantly rattling investor sentiment. However, by late Sunday, following talks with European Commission President Ursula von der Leyen, he agreed to delay the implementation of these tariffs from June 1st until July 9th, allowing more time for negotiations. This reversal provided some relief, and European stock markets have rallied strongly on the news, while U.S. futures have also pared some earlier weakness. 

Index (Futures)	Up/Down	% Change	Last
Dow Jones Futures	461	0.0111	42124
S&P 500 Futures	74.75	0.0129	5889.5
Nasdaq 100 Futures	325	0.0155	21278.25
Russell 2000 Fut.	23.7	0.0116	2066.6

This latest bout of tariff uncertainty comes after U.S. markets faltered last week, with the Dow Jones Industrial Average posting its most significant weekly decline since the start of the April rebound. That downturn was triggered by Moody’s downgrade of the U.S. credit rating and broad renewed tariff threats, which overshadowed earlier optimism from the U.S.-China tariff rollback. 

Investors are now looking ahead to a week that will feature important economic data, including the Federal Reserve’s preferred inflation gauge (PCE report on Friday), and numerous speeches from Fed officials. Early commentary from Minneapolis Fed President Neel Kashkari today struck a somewhat hawkish tone, casting doubt on the Fed having enough clarity by September to cut rates given ongoing trade uncertainty. The Fed’s previous meeting minutes highlighted increased risks to both employment and inflation, maintaining a cautious “wait and see” stance. Fiscal policy also remains a concern, with Senate Republicans potentially pushing for deeper spending cuts to the House-passed budget bill.

Economic Calendar

Major U.S. and UK markets are closed today for holidays. Key events this week include Fed speakers and the U.S. PCE inflation report. ECB President Lagarde is speaking today. 

• U.S. & UK Markets Closed for Holiday (Memorial Day / Spring Bank Holiday) 
• ECB President Lagarde Speech in Berlin.

Commodities, Currencies, and Treasuries 

Crude oil futures are trading modestly higher (WTI ~ $61.80 , Brent $64.80) as the positive sentiment from the EU tariff delay offsets some downside pressure from recent progress in U.S.-Iran nuclear talks. Gold prices have retreated slightly (-0.69% to ~$3373/oz) as immediate trade tensions with Europe eased and hopes for a Gaza ceasefire deal also potentially weighed on safe-haven demand. The U.S. dollar remains under pressure, trading near one-month lows against a basket of currencies, with the Euro testing the $1.14 level. The Japanese Yen has eased slightly from its recent highs against the dollar as immediate safe-haven demand receded. Treasury markets are closed in the U.S. today.

Asset	Up/Down	Unit / % Change	Last
WTI Crude	+0.49% (est)	USD/bbl	61.8
Brent	+0.29% (est)	USD/bbl	64.8
Gold	-0.0069	USD/oz	3373.35
EUR/USD	(Near 1.14)	USD	1.1376
USD/JPY	(Near 142.80)	JPY	142.93
10-Year Note	(Closed)	%	0.04552

Looking Ahead 

With U.S. and UK markets closed, trading volumes will be light. Market participants will be watching ECB President Lagarde’s speech for any comments on trade or monetary policy. The primary focus for the week will be on comments from various Fed officials and Friday’s U.S. PCE inflation data, which will be critical in shaping expectations for future Fed policy. The progress of trade negotiations, particularly with the EU now that a temporary reprieve is in place, will also be a key driver. The upcoming Treasury auctions will test demand for U.S. debt following last week’s credit downgrade and recent yield volatility.