Stock market today: Dow, S&P 500, Nasdaq rally as Wall Street hopes for trade progress

Tesla stock (TSLA) swung over 6% higher in afternoon trading ahead of the EV maker’s highly anticipated quarterly results. But year to date, the stock is still off by 40% as concerns over Elon Musk’s DOGE role and tariffs pile up.

“Hang on for some weak numbers,” Morgan Stanley autos analyst Adam Jonas wrote in a note to clients on Tuesday. Yahoo Finance’s Brian Sozzi wrote about one metric in particular to watch — gross profit margins — which you can read more about here.

In another troubling sign for the automaker, used Tesla vehicles are losing value quickly. Yahoo Finance Senior Auto Reporter Pras Subramanian reports on that dynamic:

Read more here.

President Trump’s escalating rhetoric against Federal Reserve Chair Jerome Powell shook financial markets to kick off the week and sparked a broader debate about the role of “safe haven” assets in the face of global and economic uncertainty.

Risk-off investments like the US dollar and long-term bonds, typically viewed as historical hedges against volatility, aggressively sold off on Monday, matching the stock market’s sharp decline. The 10-year yield (^TNX) surged back above 4.4% while the dollar (DX-Y.NYB) dropped to its lowest level since 2022.

Early trading on Tuesday saw a bit of a reprieve, but not much. The 10-year yield continued to trade around 4.4% while the US dollar index also wavered below the 100 level, a key psychological and technical milestone.

It’s an unusual development: Instead of flocking to safe havens like bonds or US currencies, investors appear to be pulling back — a rare dislocation Wall Street strategists have dubbed the “sell America” trade.

Investors accelerated that shift in sentiment with strong moves into commodities like gold (GC=F) and speculative positions such as bitcoin (BTC-USD). Gold rallied to yet another record on Tuesday, and bitcoin traded near $91,000 for the first time since February, a clear signal that investors are seeking non-dollar-denominated, globally accepted stores of value.

Fears of political interference in monetary policy seemed to have triggered Monday’s sharp sell-off, but the exact catalyst remains unclear as investors continue to react to a US economy already under pressure from tariffs, slowing growth, and escalating geopolitical tensions.

“This is not a good spot to be in in terms of narrative,” Ann Berry, founder of Threadneedle Ventures, told Yahoo Finance on Monday. “No one’s betting against America, but no one’s saying, ‘Oh, we should be going all in over there right now,’ either.”

Read more here.

All three of the major indexes rose to session highs as Bloomberg reported Treasury Secretary Scott Bessent told a closed door investor summit Tuesday that “the tariff standoff with China is unsustainable and that he expects the situation to de-escalate.”

The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) were each up about 2.7%, while the tech-heavy Nasdaq (^IXIC) added more than 3%.

Read more from Bloomberg here.

Stocks soared on Tuesday as markets recovered from Monday’s steep sell-off.

Consumer Discretionary (XLY), Financials (XLF), and Communication Services (XLC) led Tuesday’s market action, with all 11 sectors trading firmly in the green as a risk-on sentiment invaded markets.

Bitcoin (BTC-USD) also stood out, with prices trading near $91,000 for the first time since February.

New surveys from regional Federal Reserve banks continue to show the US manufacturing industry is growing concerned about the economic outlook as the scope of President Trump’s tariff plans begins to hit the business world.

On Tuesday, the Richmond Federal Reserve’s survey of manufacturing activity revealed the composite manufacturing index fell to -13 in April, down from -4. Meanwhile, new orders in the month fell to a reading of -15, well below the -4 seen in March. Prices paid, a potential sign of future inflationary impacts for businesses, jumped to a reading of 5.37, up from 3.75 the month prior.

The survey also included an ominous warning about the employment picture for the sector. Employment declined in April, per the survey, and looking six months out, firms now expect their head count lower, a shift from surveys released in both March and February.

Also out Tuesday, the Philadelphia Federal Reserve’s nonmanufacturing business outlook survey tumbled to a reading of -42.7, its lowest reading since May 2020.

“On balance, the firms continue to expect declines in activity over the next six months,” the survey said.

Read more on how Fed surveys are falling in reaction to Trump’s tariffs here.

Buying a home in America could get harder.

Homebuilder PulteGroup (PHM) warned on its post-earnings conference call that rising tariff costs will pressure home prices, affecting every price point in their markets.

“We’re in the range of $5,000 on average, and it will impact every single price point and consumer group that we serve. There might be a few minor nuances, but it’s pretty broad across the spectrum,” PulteGroup CEO Ryan Marshall told investors and analysts on the company’s first quarter earnings call Tuesday morning.

The warning comes as PHM reported adjusted earnings per share of $2.57 for the first quarter, which surpassed the average analyst estimate of $2.43. PHM stock rose 6% in early trade on Tuesday following the results.

Despite the earnings beat, the homebuilder faced challenges in sales. PulteGroup reported a 7.3% year-over-year decline in net new orders for its fiscal first quarter ending March 31, totaling 7,765 homes, falling short of analyst estimates for 8,166. Home closings also fell 7.2% year over year to 6,583, missing the analysts’ forecast of 6,595 homes.

Executives estimate that rising tariffs will increase costs by about 1% in the back half of the fourth quarter, driven by key categories such as plumbing, water heaters, porcelain, HVAC parts from China, tile flooring affected by a global 10% tariff, and electrical components like circuit breakers and load centers.

“The world needs to be prepared for some disruptions as a result of things that are going on, tariff-induced,” Marshall added.

US stocks moved higher on Tuesday morning following a bruising day on Wall Street, marked by renewed criticism of Federal Reserve Chair Jerome Powell by President Trump.

The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) were up roughly 1%, while the tech-heavy Nasdaq (^IXIC) added about 1.2%.

Earnings results have been streaming in this morning. Here’s how some of the companies that reported are trading premarket:

Verizon (VZ) stock fell over 4% as higher prices and offseason promotions by AT&T (T) and T-Mobile (TMUS) resulted in softer wireless subscriber numbers than Wall Street expected.

Kimberly-Clark (KMB) shares also fell more than 4% after reporting mixed earnings. The maker of Kleenex tissues and diapers slashed its annual profit forecast and warned that tariffs would raise supply chain costs.

Halliburton (HAL) fell 1% after a slowdown in North American drilling activity weighed on the oilfield services provider’s first quarter profits. Tariffs are expected to drive up the cost of equipment for the Houston-based company.

GE Aerospace (GE) popped 2% after the jet engine maker beat Q1 profit estimates and reaffirmed its earnings forecast for 2025. Per Reuters, airplane shortages are driving demand for parts and services, a segment that accounts for 70% of GE’s revenue.

Later on today, investors will closely watch Tesla (TSLA) earnings for updates on Elon Musk’s role in government and the automaker’s new cheaper EV. Yahoo Finance’s Pras Subramanian previews what to expect here.

Bloomberg News reports:

Copper (HG=F) climbed to a two-week high as London Metal Exchange trading resumed following the Easter break, with base metals benefiting from a recent dollar rout.

A softer greenback can support industrial commodities because it makes them cheaper for buyers in other currencies. A Bloomberg gauge of the dollar dropped to a 15-month low on Monday, when the LME was on the second of a two-day trading pause for the holiday. Copper rose as much as 1.6% on Tuesday.

Metals have had a turbulent April amid global trade turmoil unleashed by US President Donald Trump’s sweeping import tariffs. While that threatens economic growth — and demand for metals — the dollar weakness is lending support.

Read more here

Asian markets fell slightly on open and wavered around the flatline as Trump continues to rail against Jerome Powell and the Federal Reserve, weakening faith in US assets and leading to a broad sell-off.

Japan’s Nikkei 225 (^N225) and Topix (1631.T) hovered around the baseline. South Korea’s Kospi (^KS11) shed 0.3%, while the Kosdaq (^KQ11) inched lower. Australia’s ASX 200 (^AXJO) slipped 0.6%, weighed down by losses across the board. Hong Kong’s Hang Seng Index (^HSI) came in at 21,285, a dip of 0.5% from the previous close.

Bloomberg reports:

Read more here.

Gold (GC=F) reached a fresh record late on Monday as President Donald Trump’s continued tariff trade war shakes global stability and weakens the US dollar, pushing investors to haven assets.

Bloomberg reports:

Read more here.