Dow Jones futures rose over 1% on Memorial Day after U.S. President Donald Trump delayed EU tariffs until July 9. The NASDAQ 100 futures increased by 1.52%, as this postponement lowered immediate tariff worries. This decision came after talks with European Commission President Ursula von der Leyen and affects the trade agreement timeline between the U.S. and the EU. Recently, the Dow fell by 2.5% due to fears of potential 50% tariffs on the EU. Earlier, Trump had set a 20% tariff on the EU in April, then lowered it to 10% during negotiations. Actions like these create market uncertainty.

Investment Advice on 30-Year U.S. Treasuries

Bank of America recommends investing in 30-year U.S. Treasuries, even as their yield reached 5.04%. This suggestion comes as the Federal Reserve prepares to release the FOMC Meeting Minutes, which will reveal their concerns about inflation and employment. This week, tech giants Salesforce and Nvidia will announce their earnings. Nvidia expects to report $43.17 billion in revenue with an adjusted earnings per share (EPS) of $0.73. Despite a 2% decline this year, Nvidia’s annual growth remains strong. Similarly, Salesforce anticipates $9.75 billion in revenue, a 6.8% year-over-year increase, and an adjusted EPS of $2.55. The rise in Dow Jones and NASDAQ 100 futures during Memorial Day was expected after the announcement of the tariff delay until July 9. With Washington delaying harsher measures, the anxiety over increased trade tensions eased, at least temporarily. This change followed discussions between Trump and von der Leyen, influencing the postponement. This immediate relief is reflected in futures pricing. Markets dislike sudden changes, and with the earlier threat of tariffs approaching 50%, traders faced increasing unpredictability. Just a week earlier, stocks had sharply declined, especially in export-sensitive sectors, in response to renewed trade policy risks. The prior changes—first raising tariffs to 20% and then reducing them to 10%—show how unpredictable these negotiations can be. It reminds us that political outcomes can shift unexpectedly. There’s little certainty that current agreements will last. The situation may change again, and the timeline until July is now crucial to monitor closely.

FOMC Meeting Minutes and Market Implications

In terms of market positioning, bond traders are shifting towards longer-duration Treasuries. Bank of America’s recommendation for 30-year bonds, despite yields near 5.04%, is not about comfort but about hedging against inflation expectations and signs of a slowing economy. The market anticipates a potentially less aggressive approach from the Federal Reserve, although this hasn’t been confirmed. All eyes are now on the upcoming FOMC Meeting Minutes. The key question is whether the Fed will signal a change in direction or if inflation concerns will delay such a move. Employment numbers remain steady, but they haven’t shown the softness typically seen before the Fed takes action. Until the minutes are released and provide more clarity, traders have limited room for directional trades in rates. This week also brings quarterly updates from Salesforce and Nvidia. These reports will provide vital insights, not just for their own sectors but also for assessing overall demand in consumer and enterprise markets. Nvidia’s forecast of over $43 billion in revenue, along with modest earnings per share, suggests steady demand. However, the slight year-to-date drop in share price hints that the market expected more aggressive growth. Nonetheless, Nvidia’s long-term performance remains strong, attracting attention from asset managers focused on AI and semiconductors. Salesforce is also projecting nearly 7% growth year-over-year. What’s essential now is not just whether the company meets or exceeds revenue and earnings targets, but what management says about future bookings and demand. If those indicators fall below expectations, it will support a critical theme we’re observing—whether software investment is stabilizing or still expanding after the pandemic. For derivatives trading, this means adapting to short-term moves shaped by macro data while preparing for increased volatility around earnings. With tariffs delayed for now, implied volatility may decrease in trading, but open interest in major indices will likely remain focused on tech-related developments. Position sizing should factor in these short-term sensitivities to data. And with the Fed’s commentary on the horizon, maintaining agility with duration and risk exposure is more important than ever. Create your live VT Markets account and start trading now.

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