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.

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%.

European markets and U.S. futures jumped early Tuesday following a weekend trade truce between the E.U. and U.S. after Trump’s threat late last week to tack on 50% imports from the trading bloc.

Dow futures rallied more than 400 points, which equates to a gain above 1%. S&P 500 futures added 1.2%, while Nasdaq 100 futures jumped 1.3%. The U.S. stock market was dark on Monday for Memorial Day.

Strategists warned the move, announced after the market close on Friday, could spark some near-term selling in stocks and Treasurys.

The S&P 500 closed near the flatline on Thursday, while the Dow Jones Industrial Average and Nasdaq Composite finished the session marginally lower.

(Reuters) -U.S. stock index futures steadied on Thursday after a fall in the previous session, when Treasury yields surged, as investors worried President Donald Trump's tax and spending bill could sharply inflate the country's debt burden.