**Stocks Rise as Trump Extends EU Tariff Deadline**

Stocks started the week on a positive note as President Donald Trump announced a postponement of the deadline for imposing tariffs on the European Union. The S&P 500 saw a 1% increase, while the Dow Jones Industrial Average climbed by 300 points, or 0.8%. The tech-heavy Nasdaq enjoyed a 1.3% boost.

Market confidence was further buoyed by a decline in the yield on the 10-year U.S. Treasury note, which fell to 4.48%. This drop followed a period of staying at or above 4.5% last week, indicating a higher investor demand for government bonds. Global investors also showed increased interest in government bonds following a Reuters report suggesting that Japanese officials might borrow less money than anticipated.

Trump's decision to delay the tariff deadline to July 9 provided a relief to investors, especially after he had threatened a 50% across-the-board tariff on the EU starting June 1 due to stalled trade discussions. Despite the president’s unpredictable trade policies, this move was seen as a positive development. EU trade chief Maros Sefcovic and U.S. Commerce Secretary Howard Lutnick confirmed ongoing communications on the matter.

Nevertheless, Trump's tariff threats, including a potential 25% tariff on tech giants like Apple for overseas-produced smartphones, had previously sent markets into a tailspin. Analysts suggest that Trump's most aggressive tariff threats might be more about negotiation tactics than actual policy shifts. Capital Economics consultancy indicated that they expect tariffs on EU goods to ultimately settle around 10%, but noted the process could be tumultuous.

Adam Crisafulli of Vital Knowledge market commentary pointed out that while not all of Trump's bold tariff warnings are likely to materialize, the administration has already implemented significant import taxes over the past four months and hinted that more could be on the way.

This week holds further economic insights as the Bureau of Economic Analysis is set to release the Federal Reserve's preferred measure of inflation, the personal consumption index. Additionally, earnings reports from several retailers and chipmaker Nvidia will provide more context on the economic landscape.