Tariff Hopes Propel Dow 300 Pts. Higher
The Dow Jones Industrial Average rose on Tuesday, hitting its highs of the day as the White House said a major trade deal was close to being announced.
The 30-stock index hiked 300 points to 40,527.62. Helping lead the Dow higher, Honeywell surged 5.4% after the company’s latest quarterly results beat analyst estimates.
The S&P 500 index recovered 32.08 points to 5,560.83. Both indexes posted a sixth straight positive day, marking the longest win streak since July for the Dow and since November for the S&P 500.
The NASDAQ Composite strengthened 95.18 points to 17,461.32.
“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 reporters in the afternoon, without naming the country.
Amazon said a plan to display tariff surcharges on its site for discount store Amazon Haul was “not going to happen.” The stock dropped earlier Tuesday after White House press secretary Karoline Leavitt such a move would be considered a “hostile and political act.” Shares ended the session off their lows for the day, down nearly 0.2%.
General Motors also declined after the automaker reported better-than-expected profit but said it was reassessing future guidance and suspending more share buybacks as it awaits clarity on the impact from the levies. Shares had risen earlier on reports that Trump was willing to make concessions on foreign-made parts used in domestic production.
GM’s decision follows a number of other companies that have announced they’re reconsidering their full-year forecasts in the wake of rising global trade tensions. Last week, American Airlines and Skechers withdrew their 2025 outlooks, with both companies citing economic uncertainty.
Investors are gearing up for a busy earnings week, with about one-third of S&P 500-listed firms slated to post results between Monday and Friday. Big Tech is of particular focus, with Meta Platforms and Microsoft expected on Wednesday and Apple and Amazon scheduled for Thursday.
Of the more than 36% of S&P 500 companies that have reported so far this season, about 73% have exceeded Wall Street expectations. That’s modestly below the five-year average of 77%.
Prices for the 10-year Treasury gained, lowering yields to 4.18% from Monday’s 4.21%. Treasury prices and yields in opposite directions.
Oil prices lost $1.78 to $60.27 U.S. a barrel.
Prices for gold slid $15.40 to $3,332.30 U.S.
