Wall Street opens higher as tech stocks lead gains; Dow jumps over 300 points

Time of India

27-05-2025

US stock markets opened on a strong note Tuesday, with all three major indexes climbing as investor sentiment remained buoyant on the back of robust tech gains and cooling Treasury yields.
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The Dow Jones Industrial Average (DJIA) jumped 364.97 points to open at 41,968.04, rising 0.88%, while the NASDAQ Composite surged 276.3 points to 19,013.5, a gain of 1.48%, as tech-heavy counters saw renewed buying interest. The broader S&P 500 also moved higher, adding 63.68 points to trade at 5,866.5, up 1.1% in early deals.
Markets responded positively to the modest drop in US 10-year Treasury yields, which fell 4 basis points to 4.471%, offering relief to equity valuations, particularly in growth-sensitive sectors.
Meanwhile, gold prices took a hit, falling $71.9 to $3,293.9, down 2.14%, as traders rotated out of safe-haven assets in favor of equities. Oil prices also edged lower, with US crude trading at $61.04, a decline of $0.49 or 0.8%, amid mixed global demand signals.
In currency markets, the euro weakened slightly against the US dollar, with the EUR/USD pair slipping to 1.137, down 0.002 or 0.176%. The CBOE Volatility Index (VIX), often dubbed Wall Street's 'fear gauge,' edged up to 20.77, rising 0.2 points or 0.97%, signaling lingering caution despite broader market gains initial minute of trading.
Earlier, global stock markets and US futures surged on Tuesday after a weekend trade truce between the United States and the European Union eased fears of an imminent tariff escalation. The rebound comes after a tense end to last week when US President Donald Trump threatened to impose a blanket 50% tariff on EU imports starting June 1, causing markets to tumble. However, on Sunday, Trump announced he would delay the tariffs until July 9 to give both sides more time to negotiate.
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This helped lift investor sentiment, pushing S&P 500 futures up by 1.5%, Nasdaq futures by 1.6%, and Dow Jones Industrial Average futures by 1.4%—recovering Friday's losses.
In Europe, stock indexes also rose in midday trading. London's FTSE 100 jumped 0.8% as it reopened after a holiday, while Germany's DAX climbed 0.7% and France's CAC 40 edged up 0.2%. EU's chief trade negotiator said on Monday that talks with US officials had been positive and that the bloc remained committed to finalizing a deal by the July deadline.
Tesla shares rose 2.1% in premarket trading despite data showing its April vehicle sales in Europe fell 49% year-on-year to 7,261 units, even as the region's total electric vehicle market grew 28%. The sharp decline for Tesla—amid increasing competition and public backlash against CEO Elon Musk's controversial political views—highlights the brand's ongoing challenges in the region.
Southwest Airlines also gained nearly 3% ahead of its policy change taking effect Wednesday, which will end the airline's long-standing policy of free checked bags.
The airline, under pressure from activist investors, is seeking to boost revenue through additional fees after struggling financially in recent quarters.
Investors are also awaiting key US economic data due later in the day, including reports on consumer confidence and home prices, which could offer clues about the health of the economy.
In Asia, markets closed mixed. Japan's Nikkei 225 rose 0.5% to 37,724.11 after Bank of Japan Governor Kazuo Ueda signaled the possibility of an interest rate hike in the coming months.
Ueda cited surging food prices, especially rice, and inflation above the BOJ's 2% target as reasons for tightening. While acknowledging risks from global trade tensions, he said Japan was closer than ever to achieving its inflation target after decades of deflation.
Elsewhere in Asia, Hong Kong's Hang Seng gained 0.4%, while the Shanghai Composite slipped 0.2%. South Korea's Kospi lost 0.3%, Taiwan's Taiex dropped 0.9%, and India's Sensex fell 1.2%.
Australia's S&P/ASX 200 rose 0.6%.
In commodities, US benchmark crude edged down 7 cents to $61.46 per barrel, while Brent crude lost 4 cents to $64.08. In currency markets, the US dollar strengthened to 144.08 yen from 142.85 yen. The euro slipped slightly to $1.1348 from $1.1388.