• Stock futures rose after President Donald Trump said he would delay a threatened tariff of 50% on European Union imports.
• Tesla sales dropped 49% in Europe in April, as the brand suffers damage from CEO Elon Musk's role in the Trump administration and as it faces stiffer competition from automakers like BYD.
• Investors will be watching earnings this week, led by chipmaker Nvidia and retailers like Costco and Best Buy.

Here are the most important news items that investors need to start their trading day:

1. A round of a pause

U.S. stock futures rose Tuesday after President Donald Trump said he would delay a threatened 50% tariff on European Union goods until July 9. Equities sank last week after Trump said he was "recommending" the massive duty on the bloc's imports starting June 1. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite all dropped more than 2% for the week on the proposed EU tariff and Trump's threatened duty on Apple iPhones. During the shortened trading week ahead, investors will be watching U.S. negotiations with key trading partners, along with earnings reports led by Nvidia after the bell Wednesday. Follow live market updates.

2. Easing up on Europe

Trump's decision not to increase tariffs on EU goods in the coming days followed a call with European Commission President Ursula von der Leyen. The EU official said in a social media post that the sides needed until July 9 to "reach a good deal." Trump suggested last week that he was not trying to reach a trade agreement with the EU. Imports from the bloc to the U.S. currently face a 10% tariff, after Trump suspended a 20% duty proposed in early April.

3. It's electr-ick

Tesla sales are suffering in Europe as the company's brand takes a hit from CEO Elon Musk's key role in the Trump administration and competition from rivals increases. The company sold 7,261 cars in Europe in April, a 49% drop from the previous year, according to the European Automobile Manufacturers' Association. Sales fell 40% for the January through April period. As some European consumers have protested Musk's role in slashing pieces of the U.S. government as part of the so-called Department of Government Efficiency, Tesla has also contended with the rise of Chinese automakers like BYD. Tesla shares have fallen about 16% this year.

4. Nvidia's next

Investors will have a close eye on Nvidia's results Wednesday. The chipmaker, which stands as the second most valuable U.S. company with its $3.2 trillion market cap, will offer commentary on the health of the technology industry and AI boom. It's not just Nvidia: a handful of major retailers will also report earnings, as investors and consumers watch for updates on whether companies will increase prices on items like apparel and electronics due to tariffs. Here are the key reports to watch this week:

• Wednesday: Macy's, Dick's Sporting Goods, Abercrombie & Fitch (before the bell); Nvidia, Salesforce.com (after the bell)
• Thursday: Best Buy (before the bell); American Eagle, Costco, Gap (after the bell)

5. Flying into the sunset

Southwest Airlines will officially end its long-held two free checked bag policy this week. Starting Wednesday, travelers will have to spend $35 to check a bag. While the policy set Southwest apart from rivals and helped inspire loyalty to the airline, executives have faced pressure to increase the company's revenue.

– CNBC's Alex Harring, Erin Doherty, Arjun Kharpal and Leslie Josephs contributed to this report.