US Stocks Push Higher After Bessent’s Remarks: Markets Wrap

Central-Bank Speakers

Traders also heard from several central-bank speakers on Tuesday. European Central Bank’s President Christine Lagarde told CNBC that the bank has almost achieved its goal of returning inflation to 2% but must be flexible as the economic backdrop becomes more volatile.

Earlier, Fed vice chair Philip Jefferson said the central bank’s goals of stable prices and maximum employment can help foster economic mobility. And Philadelphia Fed President Patrick Harker wrote in an essay released Tuesday that measuring economic stability with the federal poverty line can fail to provide an accurate picture of the struggles among lower-income households.

Tariffs

Even though stocks seem to be bouncing back on Tuesday, concerns that Trump may be preparing to fire Powell have added to unease for traders already grappling with the turmoil unleashed by the president’s tariff onslaught.

Trump’s policies and his broadsides against the Fed have forced a reappraisal of the dollar and Treasuries as havens in times of stress. The IMF said the latest escalation in the trade war risks saddling China and the US with losses — and that it could only get worse after this year. Yet, some traders are waiting to see how negotiations play out with allies.

“We are looking at more successful trade negotiations with key trading allies. I put Europe, India, Japan, South Korea, Australia in that category,” Stuart Kaiser, head of equity trading strategy at Citigroup Inc, said on Bloomberg Television on Tuesday. “I think we will see good progress there and that is good for markets.”

Attention later Tuesday will shift to Tesla, which reports first-quarter earnings after market close. The stock is up 6% Tuesday but remains about 40% lower year-to-date as controversy over Chief Executive Officer Elon Musk’s role in the federal government has contributed to a global sales slump.

Meanwhile, the US said it’s made “significant progress” toward a bilateral trade deal following talks between Vice President JD Vance and Indian Prime Minister Narendra Modi. Vance on Tuesday called on India to buy more American goods, particularly energy and military equipment. Trump has repeatedly criticized the country for high tariffs.

Some of the main moves in markets:

Stocks

The S&P 500 rose 2.7% as of 12:40 p.m. New York time

The Nasdaq 100 rose 3%

The Dow Jones Industrial Average rose 2.7%

The MSCI World Index rose 1.9%

Currencies

The Bloomberg Dollar Spot Index rose 0.2%

The euro fell 0.6% to $1.1448

The British pound fell 0.1% to $1.3361

The Japanese yen fell 0.2% to 141.19 per dollar

Cryptocurrencies

Bitcoin rose 3.9% to $90,799.23

Ether rose 7.6% to $1,697

Bonds

The yield on 10-year Treasuries declined four basis points to 4.37%

Germany’s 10-year yield declined three basis points to 2.44%

Britain’s 10-year yield declined two basis points to 4.54%

Commodities

West Texas Intermediate crude rose 3.2% to $65.09 a barrel

Spot gold fell 1.4% to $3,375.11 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Lynn Thomasson, John Viljoen and Julien Ponthus.

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