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Big Market Gains on Tariff Delay, Improved Consumer Confidence

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Tuesday, May 27, 2025

The 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 - Free Report) intending to acquire Informatica (INFA - Free Report) for $8 billion — and which both buying and selling companies gained on the news — and an upgrade on Southwest Airlines (LUV - Free Report) from Jefferies sent major airlines up +4% or higher.

Consumer Confidence Grows Higher than Expected


Earlier 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 Close


Cloud management platform Box (BOX - Free Report) 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 - Free Report) , 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 Wednesday


The big news for tomorrow continues to be expectations for NVIDIA’s (NVDA - Free Report) 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 - Free Report) 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.

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