The Tariff Man is back. On Friday, Trump proposed imposing a 50% tariff on EU imports starting June 1, citing a lack of progress in negotiations. While the market initially wavered, it recovered by midday—suggesting investors view these threats as part of a familiar pattern. After seeing similar rhetoric with China, the market seems to anticipate that such aggressive proposals are more bark than bite, especially since sweeping tariffs hurt all sides. Still, the ongoing use of these tactics is strengthening ties between trading partners like the EU and China, which could ultimately undermine U.S. leverage over the long term. The administration continues to hint that other major trade deals are imminent, but fail to provide clarity on timing or with whom. Markets will have time to process these developments with U.S. exchanges closed on Monday in observance of Memorial Day.
Beyond trade, the key macro event to watch will be the release of the Personal Consumption Expenditures (PCE) index on Friday. As the Fed’s preferred inflation gauge, it holds weight—particularly in a jittery macro environment. Recent data suggests PCE should be in line or slightly cooler, but when consensus is firmly set, surprises have a habit of showing up.
On the earnings front, all eyes will be on NVIDIA (NASDAQ:NVDA), which reports fiscal Q1 results after the close on Wednesday. There’s no question about demand—AI investment was a recurring theme across earnings calls this season. The real focus will be on how export restrictions have impacted sales and margins. CEO Jensen Huang previously revealed that $15 billion in potential sales were lost due to policy shifts, with $5.5 billion written off in Q1 alone. This report will be pivotal in setting the tone not just for NVIDIA but for the broader market, as it could dictate where major indexes head next.
Monday
Markets Closed
Tuesday
Earnings: PDD
Wednesday
FOMC Meeting Minutes
Earnings: NVDA CRM
Thursday
Earnings: COST DELL MRVL
Friday
Personal Consumption Expenditures (PCE)
Tracking This Week
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Meta Platforms (NASDAQ:META) appears poised for a breakout toward the $700 level, but the current macro backdrop is holding it back. Investor hesitation tied to trade tensions and rising yields appears to be keeping capital on the sidelines. Meta does have some indirect exposure to U.S.-China trade via advertising revenue from firms like Temu and Shein, but both countries seem motivated to avoid a full-blown trade war. This presents a window for strategic accumulation or a chance to generate yield by selling covered calls, as investors wait for a clearer macro signal.
Snap Inc (NASDAQ:SNAP) remains a speculative name with an unclear path to consistent profitability, but its loyal user base and sticky engagement metrics give it a unique position. From a technical standpoint, the stock is showing signs of a potential short-term reversal. In the current volatile macro climate, it presents an intriguing risk-reward setup. Any positive news on the economic or geopolitical front could propel Snap back toward $10, while downside risk may be cushioned by a nearby support level, making it a calculated trade for active investors.
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