NEW YORK (AP) — Wall Street maintained a steady course on Tuesday following a significant rally the previous day, driven by hopes that President Donald Trump’s tariffs might not be as extensive as initially feared.
The S&P 500 rose 0.2% in morning trading after gaining 1.8% on Monday. The Dow Jones Industrial Average increased by 50 points, or 0.1%, as of 10:30 a.m. Eastern time, while the Nasdaq composite was up 0.2%.
U.S. stocks have recovered some of their losses since falling 10% below their all-time high earlier this month, marking their first “correction” since 2023. The S&P 500 is now down approximately 6% from its record, making the market appear less expensive than before. However, strategists warn that significant volatility is still expected with an April 2 deadline approaching. This is referred to as “Liberation Day” by Trump, when he plans to implement global tariffs on trading partners.
Despite potential relief from less severe tariffs, confidence among U.S. households and businesses has already been affected, raising concerns about reduced spending. A report on Tuesday indicated worsening pessimism among U.S. households, with the Conference Board’s consumer confidence measure dropping more than anticipated due to declining expectations for short-term conditions.
Trump Media & Technology Group saw an 8.8% increase after announcing a partnership with Crypto.com to launch investment funds focused on American assets and digital currencies. KB Home fell 4.2% following weaker-than-expected quarterly profits and revenue, amid concerns over tariff-induced cost increases. McCormick also declined slightly after reporting a lower-than-expected profit, citing macroeconomic uncertainties.
Tesla experienced modest fluctuations, ending down 0.6%, following disappointing European sales figures. European sales of Tesla’s electric vehicles dropped nearly 50% in the first two months of the year compared to last year, despite growth in the overall battery-powered car market. Additionally, Tesla faces increased competition from Chinese manufacturers like BYD.
In foreign markets, European indexes rose following mixed results in Asia. Treasury yields in the bond market slightly eased, with the 10-year Treasury yield slipping to 4.32% from 4.34%.
— news from The Associated Press
