Insights 
VT 
Dow Jones futures gained over 1% on the Memorial Day holiday after US President Donald Trump postponed EU tariffs to 9 July. The NASDAQ 100 futures climbed by 1.52% as Trump’s delay reduced immediate tariff risks. This postponement, agreed following discussions with European Commission President Ursula von der Leyen, impacts the trade deal timeline between the US and EU.
Last week, the Dow had dropped 2.5% due to concerns over potential 50% tariffs on the EU. Previously, Trump had imposed a 20% tariff on the EU in April, later reducing it to 10% amid negotiations. Measures like these have been frequent, leading to uncertainty in market conditions.
Investment Advice On 30-Year Us Treasuries
Bank of America advised investing in 30-year US Treasuries, even as their yield reached a high of 5.04%. This advice comes ahead of Federal Reserve’s upcoming release of FOMC Meeting Minutes, which will give insights into their focus on inflation and unemployment.
Tech giants Salesforce and Nvidia will report earnings this week. Nvidia’s projected revenue is $43.17 billion, with adjusted EPS at $0.73. Despite a 2% decline year-to-date, Nvidia’s annual growth remains buoyant. Salesforce expects $9.75 billion in revenue, marking a 6.8% yearly increase, and $2.55 in adjusted EPS.
The rise in Dow Jones and NASDAQ 100 futures during the Memorial Day session was largely anticipated once the announcement came that tariffs on EU goods were being postponed until 9 July. With Washington holding off on the stronger measures, fears that had been building up over heightened trade tensions found at least a temporary release valve. This shift followed negotiations between Trump and von der Leyen, which appear to have influenced the delay.
That immediate relief is reflected in futures pricing. Markets dislike sudden changes, and with the earlier threat of tariffs approaching 50%, the level of exposure to political decisions was growing too unpredictable to ignore. Just the week prior, traders saw equities pull back sharply, especially in sectors linked with export-sensitive industries, reacting to new policy risks stemming from trade talks.
The prior back-and-forth—first raising tariffs to 20%, then scaling them back to 10%—demonstrated how volatile these negotiations can be. For us, it served as a reminder that political outcomes can pivot on some unexpectedly thin lines. There’s little room for comfort in assuming that current agreements will hold. What’s been presented this week might shift again, and that window until July now becomes a timeframe to track with discipline.
Fomc Meeting Minutes And Market Implications
In terms of positioning, fixed income traders have started leaning into longer-duration Treasuries. Bank of America’s call to favour 30-year bonds despite yields near 5.04% is tied not to comfort but to hedging inflation expectations and slowing economic indicators. The market is preparing for a potentially less aggressive path by the Federal Reserve, though that hasn’t been confirmed.
All eyes now turn to the FOMC Meeting Minutes due out shortly. The central question remains whether the Fed will start signalling a pivot, or whether inflation is still seen as sticky enough to delay that move. Employment numbers are steady, but they’ve yet to show the kind of softness that historically pushes the Fed towards stimulus. Until the minutes come out and offer clearer guidance, there’s a narrowing margin for directional trades in rates.
This week also includes quarterly reports from Salesforce and Nvidia. These will provide relevant data points—not just for their sectors but for judging broader consumer and enterprise demand. Nvidia’s forecast of over $43 billion in revenue against a modest earnings per share suggests steady demand, but the small YTD decline in share price implies markets had been pricing in more aggressive growth. That said, longer-term performance remains highly resilient, which has drawn attention among asset managers allocating to AI and semiconductor exposure.
Salesforce is also guiding for near 7% growth year-over-year. What matters here is not just whether the company beats on revenue or earnings, but what management says about forward bookings and enterprise demand. If those signals come in below expectations, it would reinforce a theme we’re watching—whether post-pandemic software investment is stabilising or still expanding.
From a derivatives trading perspective, this means adjusting to shorter-term moves driven by macro data, while also preparing for higher volatility around earnings. With tariff delays holding for now, implied vols may contract on trade, but open interest in major indices will likely remain concentrated around tech catalysts. Position sizing should reflect these shorter-term peaks in data sensitivity. And given the upcoming release of Fed commentary, staying nimble across duration and risk exposure appears more urgent than usual.
