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  Business  Wall Street Soars on Tech Momentum, Tariff Reprieve; Key Economic Data Released May 28, 2025
Business

Wall Street Soars on Tech Momentum, Tariff Reprieve; Key Economic Data Released May 28, 2025

Mateo AlvarezMateo Alvarez—May 28, 20254
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New York, NY – Major U.S. stock indices closed sharply higher on Tuesday, May 28, 2025, propelled by strong performance in technology and consumer discretionary sectors and a positive geopolitical development regarding trade tariffs. The market rally marked a significant rebound, reflecting improved investor sentiment following a period of volatility.

Market Performance Detailed

The Dow Jones Industrial Average (DJI) led the gains by points, jumping a substantial 740.58 points, or 1.8%, to close the session at 42,343.65. The technology-heavy Nasdaq Composite saw the largest percentage increase, gaining 461.96 points, or 2.5%, to finish at 19,199.96. The broad-based S&P 500 also posted strong advances, adding 118.72 points, a gain of 2.1%, to settle at 5,921.54.

The market’s “fear gauge,” the CBOE Volatility Index (VIX), reflected the reduced investor anxiety by decreasing 7.8% to close at 18.96.

Tariff Relief Boosts Sentiment

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A primary catalyst for Tuesday’s robust rally was news concerning international trade policy. President Donald Trump announced a decision to postpone the 50% tariff that was proposed on European Union imports. This significant measure was originally scheduled to take effect on June 1. The delay in implementing this substantial tariff was widely interpreted by market participants as a positive signal, alleviating concerns about escalating trade tensions and their potential impact on corporate earnings and global economic growth.

Fed Commentary on Policy Path

Adding to the day’s economic discourse, Richmond Federal Reserve President Thomas Barkin offered insights into the central bank’s monetary policy stance. Speaking publicly, Barkin emphasized a cautious approach regarding future policy adjustments. He advocated for maintaining “modestly restrictive” interest rates until there is clear and convincing evidence that inflation is sustainably returning towards the Fed’s long-term target of 2%. Barkin also highlighted potential upside risks to the inflation outlook, specifically mentioning wage pressures within the labor market and the potential effects of new trade policies.

Mixed Signals from Economic Data

Tuesday’s trading session also coincided with the release of several key U.S. economic indicators, presenting a mixed picture of the nation’s economic health.

The Conference Board’s U.S. Consumer Confidence Index saw a notable surge in May, jumping to 98. This represents a substantial 14.4% increase from April’s revised figure of 85.7, suggesting a significant improvement in consumers’ assessment of current conditions and future expectations.

Data on the housing market from S&P Global Case-Shiller Home Prices for March showed continued price appreciation. The 20-City Composite increased by 1.1%, while the 10-City Composite rose by 1.2%, indicating persistent strength in key metropolitan housing markets.

Conversely, figures from the U.S. Census Bureau on Durable Goods Orders revealed a contraction in April, with orders decreasing by 6.3%. Furthermore, the March figure was revised downwards to a 7.6% increase from its previous estimate, suggesting a slowdown in orders for long-lasting manufactured goods after a stronger prior month.

Sector Performance and Drivers

The market’s strength was concentrated, with technology and consumer discretionary stocks acting as the primary engines of the rally. This performance underscores investor confidence in these growth-oriented sectors, which often benefit significantly from improvements in overall economic sentiment and lower perceived trade risks.

Outlook

The combination of a reprieve in trade tensions, albeit temporary, and a supportive technical environment propelled indices higher. While some economic data points, such as durable goods, suggested caution, the surge in consumer confidence and easing trade fears provided ample fuel for the rally. Investors will likely continue to monitor developments on trade policy, further commentary from Federal Reserve officials, and upcoming economic data releases for clues on the sustainability of this market momentum and the path forward for monetary policy.

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Mateo Alvarez

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