Big Market Gains on Tariff Delay, Improved Consumer Confidence

Tuesday, May 27, 2025The pause on EU tariffs announced over the weekend was the main story in today’s pre-market activity, and it remained so throughout the day. Although slightly off session highs intra-day, the Dow gained +740 points, +1.78%, the S&P 500 grew +118 points, +2.05%, the Nasdaq +461, +2.47%, and the small-cap Russell 2000 — which has lagged the other major indexes — won the day: +50 points, +2.48%.Aside from the 50% tariff pause on EU imports for the next six weeks (with the idea that negotiations will be hashed out between now and then), we saw Salesforce CRM intending to acquire Informatica INFA for $8 billion — and which both buying and selling companies gained on the news — and an upgrade on Southwest Airlines LUV from Jefferies sent major airlines up +4% or higher.Consumer Confidence Grows Higher than ExpectedEarlier today, the May report on Consumer Confidence from The Conference Board was released, with a headline of +98.0 — +12.3 points higher than the slightly downwardly revised April result. The Present Situation print gained +4.8 points to 135.9, while the Expectations Index +17.4 points to +72.8.What’s more, 44% of investors now believe the stock market will be higher than at present over the next 12 months. While this remains below 50%, it still helps illustrate some of the positive sentiment the market has gained since tariff delays have been instilled by the White House.Q1 Earnings Results After Today’s CloseCloud management platform Box BOX shares are up +11% following Q1 earnings results ahead of analyst expectations: 30 cents per share beat consensus by a solid nickel. Revenues of $276 million in the quarter outpaced the $274.4 million estimated. Also, revenue guidance was ratcheted higher for both Q2 and full fiscal year, and the stock is now up double-digits year to date. (You can see the full Zacks Earnings Calendar here.)Tech authentication firm Okta OKTA, on the other hand, is trading down -10% in the after-market on a Q1 beat of its own — earnings of 86 per share on $688 million in sales surpassed the 77 cents per share on $679.7 million estimates, respectively. But with full-year revenue guidance slightly below the Zacks consensus, and a mention of “potential risk on an uncertain economic environment,” its +59% gains year to day are giving some of that back at this hour.What to Expect from the Stock Market WednesdayThe big news for tomorrow continues to be expectations for NVIDIA’s NVDA Q1 earnings after the close. Shares gained another +3% today as the “AI trade” picks up steam again. NVIDIA shares are +44% off April 4 lows following the initial bite of the tariff wars. The semiconductor giant currently carries a Zacks Rank #3 (Hold) and Value-Momentum-Growth grade of C.Macy’s M and Salesforce earnings are also expected Wednesday, as are the minutes to the most recent Federal Open Market Committee (FOMC) meeting. We’ve heard from many Fed members since the May 7th decision not to move on interest rates with so much economic uncertainty ongoing, but parsing commentary between meetings — with an outlook toward future potential moves — is expected nevertheless.Questions or comments about this article and/or author? Click here>>Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Salesforce Inc. (CRM): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report Macy's, Inc. (M): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Informatica Inc. (INFA): Free Stock Analysis Report Box, Inc. (BOX): Free Stock Analysis Report Okta, Inc. (OKTA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks