United States equities rose on Tuesday, buoyed by renewed optimism over a potential trade deal and a pause in tariff pressures that offered relief to automakers.
The Dow Jones Industrial Average climbed 300 points, or 0.8%, finishing at 40,527.6. The S&P 500 advanced 0.6% to end the session at 5,560.8, while the Nasdaq Composite added 114 points, or 0.6%, to close at 17,461.3.
The gains marked the sixth consecutive positive session for both the Dow and S&P 500, the longest such run since July and November, respectively.
Markets were lifted after the White House suggested a major trade agreement could soon be finalised. “I have a deal done, done, done, done, but I need to wait for their prime minister and their parliament to give its approval, which I expect shortly,” Commerce Secretary Howard Lutnick told CNBC, without identifying the country involved.
Trump also signed an order easing the impact of tariffs on automakers. Under the order, 25% tariffs on auto parts will begin on May 3, but vehicles assembled in the U.S. can get partial reimbursements on those tariffs for two years.
In corporate earnings, General Motors finished 0.6% lower after reporting first-quarter results that slightly exceeded expectations. The automaker announced it would suspend its share buyback programme and reconsider future guidance, pending further clarity on tariff impacts.
Spotify fell 3.5% after delivering results that were below market expectations.
Technology stocks also gained, as Nvidia rose 0.3%, Tesla gained 2.2%, Meta added 0.9%, Apple increased by 0.5%, and Microsoft rose 0.7%.
Honeywell jumped 5.4% after beating analyst forecasts for its latest quarter.
Investors are also navigating a packed earnings calendar, with roughly one-third of S&P 500 companies scheduled to report results this week. Focus is turning to Big Tech, with Meta Platforms and Microsoft due Wednesday (Thursday AEST), followed by Apple and Amazon on Thursday (Friday AEST).
On the bond markets, yields on the 10-year and 2-year U.S. Treasury notes declined by 0.8% and 0.9%, settling at 4.172% and 3.656%, respectively.
