(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

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Futures rise: Dow 1.32%, S&P 500 1.52%, Nasdaq 1.63%

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Temu-parent PDD Holdings ( PDD ) falls on quarterly revenue miss

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Nvidia ( NVDA ) gains ahead of quarterly earnings due Wednesday

(Updates with analyst comments, prices)

By Shashwat Chauhan and Kanchana Chakravarty

May 27 (Reuters) - U.S. stock index futures surged on

Tuesday, after President Donald Trump dialed back his threat of

steep tariffs against the EU and tensions between the United

States and the European bloc cooled, as traders returned after

the Memorial Day break.

On Sunday, Trump rolled back his threat to impose 50%

tariffs on EU imports next month, restoring a July 9 deadline to

allow for talks between Washington and the 27-nation bloc to

arrive at a deal.

He had said on Friday that he was recommending a 50% tariff

effective June 1 and expressed frustration that trade

negotiations with the EU were not moving quickly enough.

"We think the current US tariff level is not a 'stable

equilibrium' and we do not take it for granted that the US and

the EU will be able to agree on a benign outcome by July," UBS

strategists said in a note.

Asian and European markets were mixed after rising on

Monday, although moves in U.S. assets were more pronounced as

traders returned after the long weekend.

At 06:42 a.m. ET, Dow E-minis were up 551

points, or 1.32%, S&P 500 E-minis rose 88.25 points, or

1.52%, and Nasdaq 100 E-minis gained 342.5 points, or

1.63%.

Most megacap and growth stocks jumped in premarket trading.

Apple was up nearly 2%, Alphabet rose 2% and Tesla climbed 2.7%.

Trump Media & Technology Group ( DJT ) advanced 10.3% after

a media report said Trump's social media firm planned to raise

about $3 billion to spend on cryptocurrencies such as bitcoin.

Shares of semiconductor industry bellwether Nvidia ( NVDA )

kicked off the week with a 2.6% rise. The company is slated to

report quarterly earnings after markets close on Wednesday.

Long-dated U.S. Treasury yields dipped, with the one on the

30-year note set for its biggest one-day fall since

mid-April, mimicking a steep price rally in longer-term Japanese

debt.

In economic data, the May consumer confidence report is due

shortly after markets open on Tuesday, while minutes from the

U.S. Federal Reserve's last policy meeting are scheduled to be

released on Wednesday.

A number of Fed officials are expected to speak through the

week. Minneapolis Fed President Neel Kashkari on Tuesday called

for holding interest rates steady until there is clarity on how

higher tariffs impact inflation.

Personal Consumption Expenditure data - the Fed's favored

inflation indicator - for May and a second estimate of

first-quarter GDP are also scheduled to be released later this

week.

Wall Street witnessed sharp weekly losses on Friday as

worries about mounting U.S. debt and Trump's latest trade policy

shakeup sparked a broad selloff.

Trump's sweeping tax bill - which is expected to

substantially expand federal debt - passed a critical House

vote, adding to worries.

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.

Temu-parent PDD holdings fell more than 12% after

missing Wall Street's first-quarter revenue estimates.