Wall Street staged a late-day rally Tuesday, buoyed by renewed optimism over U.S. trade policy and upbeat corporate earnings. The Dow Jones Industrial Average climbed 300 points, or nearly 0.75%, while the S&P 500 rose 0.6% and the tech-heavy Nasdaq Composite advanced 0.5%.
Investor sentiment shifted sharply in the afternoon following comments from U.S. Commerce Secretary Howard Lutnick, who told CNBC that a trade agreement with a foreign nation had been finalized but was still awaiting approval overseas. While Lutnick did not disclose which country was involved, his remarks sparked broad enthusiasm, suggesting a potential thaw in President Donald Trump’s hardline trade posture.
Markets Recover, But Political Drag Remains
Tuesday’s rally offered some relief from what has otherwise been a historically weak start for markets under Trump’s renewed leadership. Despite the bounce, analysts note that the first 100 days of Trump’s second term are shaping up to be the worst market performance for any U.S. president since Richard Nixon in 1973.
The S&P 500 is currently on pace for its steepest loss in a president’s first 100 days in over five decades — a sobering indicator that underscores investor anxiety surrounding political unpredictability, shifting trade dynamics, and tightening economic conditions.
Trump Signs Executive Order on Auto Tariffs
In other developments, President Trump signed a long-awaited executive order aimed at curbing overlapping automotive tariffs. The move is seen as a modest win for automakers, many of whom have been struggling with existing levies and global supply chain disruptions.
General Motors, which reported stronger-than-expected earnings earlier in the day, responded by pulling its 2025 guidance and suspending share buybacks, citing the need for greater clarity from the administration on future tariff policy.
Meanwhile, Amazon shares reversed earlier losses after the company publicly denied reports it planned to display tariff-related surcharges on its product listings. The White House had labeled the rumored move as “hostile” and “politically motivated,” further escalating tensions between the tech giant and federal regulators.
Earnings Drive Key Gains
Earnings season remained a focal point for markets. Coca-Cola and Spotify reported results before the bell, both offering mixed outlooks. After the close, investors awaited results from Starbucks.
Industrial giant Honeywell was among the day’s standout performers, rallying over 5% after posting a strong earnings beat. Its performance played a key role in lifting the Dow’s overall trajectory.
Economic Uncertainty Persists
Despite the market’s strong close, underlying economic data continued to flash warning signs. Consumer confidence fell for the fifth consecutive month, reflecting growing concerns over inflation, job stability, and political uncertainty.
Additionally, job openings remain at a four-year low, further complicating the economic outlook as employers hesitate to expand hiring amid fluctuating demand and cost pressures.
Bitcoin Steady Near $95K
In crypto markets, Bitcoin held steady around the $95,000 level throughout the day, continuing its recent consolidation after a major run-up in early April. Analysts are closely watching how macroeconomic shifts and political signals — including Trump’s upcoming 100-day address — could affect institutional sentiment toward Bitcoin and digital assets in the weeks ahead.
Final Take
While Wall Street found its footing on Tuesday, the broader picture remains clouded by political risk, economic headwinds, and global uncertainty. Investors welcomed signals of diplomatic progress on trade, but skepticism lingers over whether Trump’s policies will deliver sustained market confidence in the long term.
With earnings season ramping up and geopolitical tensions on the rise, volatility is likely to remain elevated — leaving traders to balance short-term optimism against a backdrop of long-term caution.
