Stock futures are pointing to a sharply higher open for major U.S. indexes on Tuesday as investors react to the latest back-and-forth from the Trump administration on trade.

Futures on Wall Street are maintaining gains from the holiday trade as trading will resume later this evening after the Memorial Day Holiday. The Dow futures are currently trading with gains of 350 points,

The S&P 500 is about 6% from record highs, although it has rebounded sharply from April lows as easing trade concerns and tame inflation data spurred a risk-on rally. On the downside, shares of gold miners including Newmont fell about 2% as gold prices slipped more than 1%.

U.S. stocks were trading at session highs at midday, extending early gains triggered after President Donald Trump over the weekend said he would pause plans for a 50% tariff on European Union imports that he had announced at the end of last week from June 1 to July 9.

U.S. President Donald Trump said Sunday he will delay 50% tariffs on the European Union until July 9. U.S. stocks dropped Friday on Trump’s tariff threats against the EU, but much less than they did on "Liberation Day.

Several EU governments have signalled they want a quick deal with the US to head off Donald Trump’s threat of 50 per cent tariffs on the bloc, urging the European Commission to keep talking to Washington rather than taking the path of confrontation.