Stock Market Surges Amid Trade De-escalation Hopes

US. stocks soared on Tuesday, rebounding from a turbulent Monday, as investors pinned their optimism on signs of potential de-escalation in global trade tensions. The S&P 500 and Dow Jones Industrial Average each climbed over 1.5%, while the tech-heavy Nasdaq surged by more than 1.8%. The rally was fueled by early reports suggesting that the ongoing tariff standoff with China might ease, though enthusiasm waned slightly in the afternoon after indications that formal negotiations had not yet begun and could prove challenging.

The market’s upbeat mood marked a stark contrast to the previous day’s sharp sell-off, which was triggered by heightened tensions between the U.S. administration and the Federal Reserve. Investors, grappling with uncertainty over rapidly shifting trade policies, found some relief in positive developments, including progress in trade talks with India. However, the broader economic outlook remains clouded by concerns over tariffs, slowing growth, and geopolitical friction, keeping volatility front and center for Wall Street.

Beyond stocks, alternative assets like bitcoin and gold captured attention. Bitcoin, trading near $91,000, continued to diverge from traditional risk assets, gaining over 8% since April 1 while equities faltered. Gold hit a new record above $3,435 an ounce, driven by a weakening U.S. dollar and growing demand for safe-haven investments. This shift reflects a broader “sell America” sentiment, with investors pulling back from traditional hedges like U.S. bonds and the dollar in favor of globally accepted stores of value.

Corporate earnings also shaped the day’s narrative. Tesla shares jumped around 5% ahead of its highly anticipated quarterly results, despite a year-to-date decline of roughly 40% amid concerns over slumping sales and brand challenges. Meanwhile, homebuilder PulteGroup warned that rising tariff costs could push home prices higher, adding pressure to an already strained housing market. Other companies, including Verizon and Kimberly-Clark, faced declines after reporting mixed earnings and citing tariff-related cost increases.

As markets navigate this complex landscape, the interplay of trade policy, monetary uncertainty, and corporate performance will likely dictate the path forward. For now, Tuesday’s rally offers a glimmer of hope, but investors remain cautious, bracing for potential disruptions in an economy under strain.