A tariff reprieve, bond yields, and Nvidia earnings: What investors are watching as stocks rise

ANGELA WEISS/AFP via Getty Images Stocks rallied to start the week, with a handful of catalysts on investors' radars. Trump said he would pause tariffs on the EU after calling for 50% tariffs starting on June 1 last week. Bond yields also edged lower after spiking last week, and investors are gearing up for Nvidia earnings. US stocks surged to kick off the shortened trading week, fueled by the latest tariff developments and lower bond yields, with traders also eyeing a midweek earnings report from a key mega-cap tech name. Major indexes rose at the open, with the Dow Jones Industrial Average climbing more than 500 points. The S&P 500 and Nasdaq Composite were up more than 1%. Nvidia shares jumped as traders looked forward to the chipmaker's upcoming earnings report on Wednesday. Here's where US indexes stood at 2:45 p.m. ET on Tuesday: S&P 500: 5,917.18, up 1.97% Dow Jones Industrial Average: 42,320.81, up 1.73% (+717.74 points) Nasdaq composite: 19,177.03, up 2.36% Here's what investors are watching in the holiday-shortened week: Win McNamee/Getty Images On Sunday, President Donald Trump said he would delay tariffs on goods from the European Union to July 9 after Ursula von Leyen, the European Commission president, asked him to do so. Last week, the president called for 50% tariffs on the EU to start on June 1. Markets have been rocked by trade chaos for much of this year, with stocks whipsawing on the president's plans to implement or delay duties on imports. Stocks jumped after the president announced a 90-day pause on most tariffs in April, and have churned higher on recent trade deal frameworks hammered out with China and other countries. Trump took to Truth Social on Monday to reiterate the administration's progress on trade deals and to proclaim that the US was entering a "golden age." "Countries from all over the World want to make TRADE DEALS with us. IT IS A BEAUTIFUL THING TO SEE," he wrote in a post on Truth Social. Douglas Rissing/Getty Images Long-dated bond yields dropped on Tuesday, a sign that investors in the bond market are feeling less anxious than they were last week, as traders eyed Trump's tax bill moving through Congress and digested Moody's downgrade of US debt. Importantly, Japan signaled possible changes to its plans for debt issuance that could mean less potential pressure on US yields. Bloomberg reported that the country's finance ministry was seeking comment from the market on the amount of debt issuance that it would be appropriate. Lower debt issuance could drive yields back down on Japanese bonds, and could cause domestic investors to return to US Treasurys.