Wall Street Rebounds on Trade Hopes
US stocks rallied on Tuesday as hopes for a de-escalation in the US-China trade war lifted investor sentiment after a sharp selloff the previous day.
The S&P 500 and Nasdaq each climbed 2.5%, the Dow Jones surged 1016 points. Optimism stemmed from Treasury Secretary Bessent’s comments at a JPMorgan-hosted summit, where he said the current tariff standoff is "unsustainable" and signaled that negotiations with China would move toward resolution.
However, gains eased later in the day as Bessent acknowledged that formal talks had not yet begun and warned negotiations would likely be a “slog.” Meanwhile, fresh concerns lingered over President Trump's attacks on Fed Chair Jerome Powell, which contributed to recent market volatility.
Tech stocks led the rebound, shares of Tesla rose 4.6% ahead of its earnings release, though the company remains down 40% year-to-date. On the earnings front, General Electric jumped 6.1% after results, while Verizon underperformed after posting earnings.
Source: Trading Economics
