U.S. stocks ticked higher when markets opened on Tuesday as a level of calm settled over markets despite still-simmering trade tensions with China.
The Dow Jones Industrial Average was up 0.4% in early trading on Tuesday, while the S&P 500 and the tech-heavy Nasdaq Composite each advanced 0.5%. Stocks rose for a second consecutive day on Monday as market participants digested President Trump’s announcement over the weekend that semiconductors and various consumer electronics would be exempt from the tariffs announced earlier this month.
It has been a volatile two weeks for the stock market, with Trump’s unveiling of “reciprocal” tariffs sparking Wall Street’s worst sell-off in years before his announcement of a 90-day pause fueled its best day in years. Uncertainty remained high on Tuesday despite the weekend’s relief; Treasury Secretary Howard Lutnick on Sunday suggested the tariff exemption for electronics was just a temporary reprieve before the products are subjected to their own duties.
Tensions between the U.S. and China, which is still subject to a tariff rate of more than 100%, were high on Tuesday. Boeing (BA) stock fell 2% in early trading amid reports Beijing had instructed carriers to stop accepting deliveries of the American jet maker’s planes.
Mega-cap tech stocks were mixed on Tuesday. Chipmakers Nvidia (NVDA) and Broadcom (AVGO) were slightly higher, as was Microsoft (MSFT). Shares of Apple (AAPL) slipped after climbing yesterday following Trump’s smartphone tariff exemption. Amazon (AMZN), Alphabet (GOOG), Meta Platforms (META), and Tesla (TSLA) also traded less than 1% lower.
Earnings season picked up steam Tuesday, with better-than-expected results from Bank of America (BAC) lifting its stock more than 4%. Johnson & Johnson (JNJ) shares were little changed despite the healthcare giant topping earnings estimates.
The 10-year Treasury yield continued to decline after tumbling Monday. The 10-year yield, which affects the interest rates on consumer loans like mortgages, was at 4.37%. Yields have surged this month despite the recent flight to safety, a phenomenon that has puzzled some onlookers worried about dysfunction in the bond market.
Gold futures traded 0.4% higher at $3,240 an ounce, while West Texas Intermediate crude oil futures were down 0.1% at $61.50 a barrel. Bitcoin was recently trading at $86,000, up from its overnight low of about $84,500.
Bank of America Stock Jumps After Topping Earnings Estimates
38 minutes ago
Shares of Bank of America (BAC) rose in early trading Tuesday after the financial giant’s first-quarter results came in better than expected.
The firm recorded earnings per share (EPS) of $0.90 on revenue of $27.37 billion. Analysts were projecting $0.82 and $26.80 billion, respectively, per Visible Alpha.
Bank of America reported net interest income (NII) of $14.44 billion, in line with the analyst consensus.
Despite largely stronger-than-expected Q1 results thus far, a number of executives at big banks have been less bullish on the macroeconomic outlook for 2025 amid uncertainty about how the Trump administration’s tariffs will impact the economy.
“Our business clients have been performing well; and consumers have shown resilience, continuing to spend and maintaining healthy credit quality,” Bank of America CEO Brian Moynihan said. He added that Bank of America is well-positioned to continue growing even “though we potentially face a changing economy in the future.”
Shares of Bank of America, which topped estimates in each quarter of 2024, were up more than 4% Tuesday morning. They entered the day down roughly 17% since the start of the year.
Stock Futures Tick Lower After 2 Days of Gains
1 hr 17 min ago
Futures contracts connected to the Dow Jones Industrial Average were down 0.3% in premarket trading on Tuesday.
S&P 500 futures were off 0.2%.
Nasdaq 100 futures were also down 0.2%.
