U.S. markets bounced back on Tuesday, with the Dow Jones Industrial Average jumping 300 points — a nearly 0.75% gain — as optimism returned to Wall Street on news of progress in international trade negotiations. The S&P 500 and Nasdaq Composite also rose by 0.6% and 0.5%, respectively, reversing early-session caution.
The shift in sentiment followed remarks from Commerce Secretary Howard Lutnick, who revealed during a CNBC interview that a new trade deal with a foreign nation was finalized but pending international sign-off. The lack of details didn’t dampen investor enthusiasm, with markets viewing the announcement as a potential pivot from the uncertainty clouding Trump’s trade approach.
Still, the context remains challenging. The Trump administration’s first 100 days in its second term have been rocky for investors. The S&P 500 is on track to log the worst 100-day performance to start a presidency since 1973 — a stark contrast to the market-friendly beginnings of most modern presidencies.
Trump’s Auto Order Calms Industry Concerns
Earlier in the day, President Trump signed an executive order halting overlapping automotive tariffs, easing pressure on the U.S. auto industry. The move was seen as a lifeline for automakers coping with rising costs and policy ambiguity.
General Motors, which posted better-than-expected earnings, used the occasion to suspend its 2025 financial outlook and pause share buybacks until further guidance emerges. Meanwhile, Amazon quelled investor concerns by denying reports that it planned to pass along tariff-related costs to consumers on its platform — a move the White House had criticized sharply.
Earnings Fuel Positive Momentum
Earnings reports provided a tailwind for the market. Honeywell led the Dow higher with a 5% surge after posting a strong earnings beat. Coca-Cola and Spotify delivered mixed results before the bell, while traders awaited Starbucks’ report after hours.
Economic Signals Remain Mixed
Despite the rebound, broader economic data painted a less optimistic picture. Consumer confidence declined for a fifth straight month, and U.S. job openings remained stuck at a four-year low, highlighting persistent hiring hesitations in the private sector.
Bitcoin Holds Ground Near $95K
In the crypto space, Bitcoin hovered near the $95,000 level for most of the session. The flagship digital asset continues to move in sync with broader macro developments, with traders now eyeing Trump’s 100-day speech as a potential influence on future crypto policy.
Outlook
While Tuesday’s rally offered short-term relief, the road ahead remains bumpy. Trade headlines, earnings surprises, and economic uncertainty will likely continue to drive volatility — and the market’s reaction to Trump’s evolving policy signals could prove critical in the coming weeks.
