(Bloomberg) \u2014 US stocks jumped, nearly wiping out Monday\u2019s plunge, as traders unleashed risky bets that the White House will clinch crucial trade deals with top economic partners. The dollar recovered slightly from Monday\u2019s lows while short-term Treasury yields climbed.<\/p>\n
Most Read from Bloomberg<\/p>\n
The S&P 500 rose 2.1% after a series of reports nurtured Wall Street expectations that tariff-related hostilities are easing as the US makes progress in fleshing out agreements.<\/p>\n
A volley of tariff-related headlines continue to fuel outsized market moves as fast-twitch investors pour over news reports for clues on how to trade the crisis. White House Press Secretary Karoline Leavitt, in a news briefing, said that progress is being made on trade deals and that the \u201cball is moving in the right direction with China.\u201d It follows a Politico report that the White House is nearing general agreements with Japan and India on trade.<\/p>\n
Earlier, stocks had pushed even higher following Bloomberg News\u2019 report of closed-door comments by Treasury Secretary Scott Bessent saying the tariff standoff with China is unsustainable and that he expects the situation to de-escalate.<\/p>\n
Treasuries and the dollar still posted smaller moves on Tuesday, showing greater stability after Monday, when investors were worried about the implications of any effort to replace the Federal Reserve Chair by President Donald Trump, who has berated Powell for being slow to cut interest rates. While the 10-year Treasury yield barely budged on Tuesday, two-year yields briefly rose to 3.82% after lackluster demand for an auction.<\/p>\n
Similar to yesterday, Tuesday\u2019s big moves in stocks came amid lighter-than-usual trading, a backdrop that sometimes exacerbates swings. Volume in Nasdaq 100 shares was about 13% below the recent average, data compiled by Bloomberg show, while Monday\u2019s post-Easter level was around 20% off the historical pace.<\/p>\n
\u201cWe are in a period of extreme uncertainty, where one should not react too much to daily moves,\u201d Anwiti Bahuguna, Northern Trust Asset Management\u2019s CIO of global asset allocation, said on Bloomberg Television on Tuesday.<\/p>\n
Near term, Jeff Schulze of ClearBridge Investments expects the S&P 500 to move between lows seen a couple of weeks ago to around the 5,400 level.<\/p>\n
\u201cI think the biggest driver of being outside of that range is whether or not the US does indeed have a recession,\u201d Schulze said at an event on Tuesday. \u201cHowever, longer term, I think this is a great opportunity to be dollar-cost-averaging into the weakness that we\u2019ve seen. A lot of negativity has been priced in a short period of time for US equities.\u201d<\/p>\n
Story Continues <\/p>\n
Gold pared gains after rising to a record high past $3,500. Bitcoin advanced more than 4%.<\/p>\n
Among individual stock movers:<\/p>\n
All members of the Bloomberg Magnificent Seven Index are trading higher on Tuesday<\/p>\n<\/li>\n
3M Co. rose as much as 8.9% after it stood by its full-year financial guidance while acknowledging new risks from the trade war<\/p>\n<\/li>\n
Northrop Grumman Corp. reported first-quarter profit that missed analysts\u2019 expectations and cut its earnings forecast for the year \u2014 shares are down 13%<\/p>\n<\/li>\n
Shares of RTX Corp., an aerospace and defence giant, fell 10% after the company said tariffs pose a significant risk to operating profit<\/p>\n<\/li>\n
Verizon Communications Inc. reported a larger-than-expected decline in mobile-phone subscribers in the first quarter. Shares are flat.<\/p>\n<\/li>\n<\/ul>\n
Central-Bank Speakers<\/p>\n
Traders also heard from several central-bank speakers on Tuesday. European Central Bank\u2019s 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.<\/p>\n
Earlier, Fed vice chair Philip Jefferson said the central bank\u2019s 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.<\/p>\n
Meanwhile, Fed Bank of Minneapolis President Neel Kashkari said it\u2019s the central bank\u2019s job to make sure tariffs don\u2019t spur an ongoing inflation problem, echoing recent comments by Powell.<\/p>\n
Tariffs<\/p>\n
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\u2019s tariff onslaught.<\/p>\n
Trump\u2019s 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 \u2014 and that it could only get worse after this year. Yet, some traders are waiting to see how negotiations play out with allies.<\/p>\n
\u201cWe are looking at more successful trade negotiations with key trading allies. I put Europe, India, Japan, South Korea, Australia in that category,\u201d Stuart Kaiser, head of equity trading strategy at Citigroup Inc., said on Bloomberg Television on Tuesday. \u201cI think we will see good progress there and that is good for markets.\u201d<\/p>\n
Attention later Tuesday will shift to Tesla, which reports first-quarter earnings after market close. The stock is up 4% Tuesday but remains about 40% lower year-to-date as controversy over Chief Executive Officer Elon Musk\u2019s role in the federal government has contributed to a global sales slump.<\/p>\n
Meanwhile, the US said it\u2019s made \u201csignificant progress\u201d 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.<\/p>\n
Some of the main moves in markets:<\/p>\n
Stocks<\/p>\n
The S&P 500 rose 2.1% as of 3:20 p.m. New York time<\/p>\n<\/li>\n
The Nasdaq 100 rose 2.1%<\/p>\n<\/li>\n
The Dow Jones Industrial Average rose 2.3%<\/p>\n<\/li>\n
The MSCI World Index rose 1.5%<\/p>\n<\/li>\n<\/ul>\n
Currencies<\/p>\n
The Bloomberg Dollar Spot Index rose 0.4%<\/p>\n<\/li>\n
The euro fell 0.8% to $1.1423<\/p>\n<\/li>\n
The British pound fell 0.3% to $1.3336<\/p>\n<\/li>\n
The Japanese yen fell 0.5% to 141.56 per dollar<\/p>\n<\/li>\n<\/ul>\n
Cryptocurrencies<\/p>\n
Bitcoin rose 4.9% to $91,637.53<\/p>\n<\/li>\n
Ether rose 7.9% to $1,701.41<\/p>\n<\/li>\n<\/ul>\n
Bonds<\/p>\n
The yield on 10-year Treasuries declined two basis points to 4.39%<\/p>\n<\/li>\n
Germany\u2019s 10-year yield declined three basis points to 2.44%<\/p>\n<\/li>\n
Britain\u2019s 10-year yield declined two basis points to 4.54%<\/p>\n<\/li>\n<\/ul>\n
Commodities<\/p>\n
West Texas Intermediate crude rose 1.9% to $64.31 a barrel<\/p>\n<\/li>\n
Spot gold fell 1.3% to $3,381.04 an ounce<\/p>\n<\/li>\n<\/ul>\n
This story was produced with the assistance of Bloomberg Automation.<\/p>\n
\u2014With assistance from Lynn Thomasson, John Viljoen, Julien Ponthus, Vildana Hajric and Isabelle Lee.<\/p>\n
Most Read from Bloomberg Businessweek<\/p>\n
\u00a92025 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) \u2014 US stocks jumped, nearly wiping out Monday\u2019s plunge, as traders unleashed risky bets that the White…\n","protected":false},"author":2,"featured_media":41946,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3091],"tags":[3662,23639,23638,51,23640,23641,2441,6202,2916,12330,16,15,1018],"class_list":{"0":"post-41945","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-bloomberg","9":"tag-bloomberg-news","10":"tag-bloomberg-television","11":"tag-business","12":"tag-economic-partners","13":"tag-economic-stability","14":"tag-markets","15":"tag-president-donald-trump","16":"tag-trade-deals","17":"tag-treasury","18":"tag-uk","19":"tag-united-kingdom","20":"tag-white-house"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114383408778935950","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/41945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=41945"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/41945\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/41946"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=41945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=41945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=41945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}