Happy Tuesday! Markets rebounded as investors cheered a sudden shift in U.S.-EU trade tensions, which sent stock futures soaring. Read on to see if this newfound optimism is built on solid ground, or just a calm before the next storm.

Also, in a surprising twist that caught even institutions and hedge funds off guard, retail investors just staged a record-breaking buying spree. Discover the surprising shift reshaping Wall Street’s balance of power.

In today's edition

• MARKET RECAP

• FIVE ZINGERS

• ETF STRATEGIES

• MARKET HISTORY

• ONE FOR THE ROAD

Trump Announces EU Tariff Extension, Trade Commissioner Says Talks Progressing Well

Wall Street came back from the long weekend with a jolt of optimism, as U.S. stock futures rallied in the wake of easing trade tensions between the U.S. and European Union.

After President Trump threatened to impose a 50% tariff on EU goods last Friday — complaining that the EU was being difficult to work with — the market was greeted with news that the United States will be giving the EU an extension, just days before the tariff was going to go into effect.

Behind the scenes, EU Trade Commissioner Maros Sefcovic hinted at positive developments, describing recent conversations with U.S. officials as “good calls.” His commitment to striking a deal within the new timeline has temporarily cooled what had been a heating trade spat.

But with only weeks left before the deadline, questions remain: is this a genuine step toward a broader agreement, or just a pause before another flare-up?

Don’t miss Benzinga’s must-attend virtual forum on the rapidly evolving ETF market! Join us on June 5th at 10 am ET to explore the latest trends in crypto ETFs, thematic ETFs and innovative structures. Gain valuable insights into strategies reshaping how financial advisors guide clients and how retail investors adjust their portfolios.

Last Week: U.S. indexes tumbled on Friday as renewed trade tensions weighed on investor sentiment, following President Trump’s call for 50% tariffs on the European Union and a potential 25% import tax on iPhones not made in the U.S. Both the S&P 500 and Dow posted their fourth consecutive losing day, falling 2.6% and 2.5% on the week, and back into negative territory on the year. In addition, Bond yields fell, with the 10-year Treasury closing at 4.51%. The U.S. dollar weakened against major currencies, and oil prices declined as well with expectations of increased OPEC+ supply in July. Meanwhile, earnings season is near completion with 96% of the S&P 500 companies having reported quarterly results. To date, 78% of companies have beaten analyst estimates, with an average upside surprise bring 8.4%. Nvidia, the bellwether, reports after the close on Wednesday.

On Our Radar: Analysts will be monitoring the consumer confidence report — due later this morning — as investors look for signs of resilience or weakness amid shifting economic conditions. On the earnings front, Okta (OKTA), and HEICO (HEI) will headline a slate of companies that will report earning results after the bell today.

Clearance Crash: Shares of Ross Stores fell as much as 15% on Friday despite beating Q1 earnings on the top and bottom lines. Read on to see why analysts are slashing their price targets and why investors are bargain hunting elsewhere.

Bot To The Future: Wedbush analyst Dan Ives just turbocharged his Tesla outlook, raising his price target from $350 to $500 ahead of the much-anticipated June debut of its autonomous robotaxi. Discover why Ives believes this event signals a new era of growth and how Tesla’s market cap could reach $2 trillion by 2026.

Jet Lagged Justice: The DOJ made an offer to Boeing a deal to sidestep criminal charges over the deadly 737 Max crashes — raising fresh questions about the company’s long-term accountability and reputation. Is this a lifeline for investors that clears Boeing for takeoff, or a red flag for turbulence ahead?

Sole Searching: Deckers Outdoor, the footwear and apparel company, is feeling the pinch despite beating earnings estimates as the company provide guidance that fell short of expectations. With margins squeezed and brand momentum slipping, investors are left ‘sole searching’ at the moment. Read on to see if Deckers can find its footing again.

Cook vs. Trump: One top analyst says Apple would rather take a 25% tariff hit on iPhones than bring production back to the U.S. With Trump turning up the heat and India rising as a manufacturing hub, click to see how this high-stakes standoff could reshape Apple’s global strategy, and your portfolio.

Join Matt Maley live this Wednesday at 6 PM ET as he breaks down the short-term volatility strategy that helped him capture triple-digit gains on a single ETF.

You’ll get his latest setups, price levels, and what he’s watching now as volatility accelerates. Don’t miss it.

On This Day In 2004…

The U.S. stock market experienced one of its most challenging weeks for initial public offerings (IPOs) in years. All six IPOs (Republic Airways, AngioDynamics, Acadia Pharmaceuticals, Critical Therapeutics, Genworth Financial and Standard Parking), ended up being priced below their initial ranges, reflecting a lack of investor demand. This event was considered one of the worst weeks for IPOs in years. The market wouldn’t see a similarly dismal run for IPOs again for nearly a decade, underscoring just how rare and severe the downturn was. And time hasn’t been kind to all of them. As of today, only three of those companies remain publicly traded.

QUOTE OF THE DAY

“Psychology is probably the most important factor in the market – and one that is least understood.”

— David Dreman

Record $4.1 Billion Retail Buying Spree: What This Market Recovery Means For Your Portfolio

Something unusual happened on Wall Street last week, and it wasn’t driven by hedge funds or algorithms.

In a bold move in regards to the U.S. credit downgrade that rattled markets, retail investors flooded into equities with record-breaking force. With over $4.1 billion in net stock purchases by midday Monday, individual investors helped erase a steep early loss in the S&P 500.

This sudden retail surge didn’t just steady the markets; it may have signaled a deeper transformation underway. From Tesla to Palantir, familiar names lit up the tape, while institutional investors largely watched from the sidelines.

Are we witnessing a shift in market influence between Main Street and Wall Street? Or are retail investors walking a tightrope between conviction and overconfidence?

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