US stocks swung between positive and negative territory on Tuesday but finished the trading day firmly in the green as investors fielded a rush of fresh earnings reports and digested a much-needed tariff reprieve for automakers.
The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) jumped about 0.6% and 0.5%, respectively. The Dow Jones Industrial Average (^DJI) climbed 0.8%, or just over 300 points, extending its longest win streak of 2025.
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On Tuesday, President Trump signed an executive order to support automakers by preventing additional tariffs on foreign-made cars from being layered on top of the existing tariffs already imposed by the administration.
This means automakers paying Trump’s auto tariffs on imports won’t also be charged for other duties.
The latest tariff update sparked optimism for a further dial-down in trade tensions, after Trump’s upbeat tone on trade negotiations, particularly with China, helped stocks climb back from sharp intra-session losses on Monday.
But Treasury Secretary Scott Bessent again on Tuesday put the onus on China, saying the tit-for-tat tariffs between the countries were not sustainable — for China. He also would not confirm whether Trump had spoken with Chinese President Xi Jinping.
Meanwhile, Amazon (AMZN) came under fresh scrutiny from the White House after reports that it would show tariff price increases in product price tags. The White House called the move a “hostile and political act.” Shares fell, but recovered after Amazon denied the plans. The stock closed just below the flatline.
Read more: The latest on Trump’s tariffs
Earnings took the spotlight with a flood of releases Tuesday morning. General Motors (GM) delayed its earnings conference call until Thursday, leaving room to reflect any White House tariff moves. While GM posted a first quarter earnings beat, the biggest of the Big Three US automakers put its forward 2025 guidance on hold as it grapples with the tariff fallout.
Spotify (SPOT) and Coca-Cola (KO) were also among the closely watched companies reporting before the bell, with the focus on Trump’s tariffs and whether companies are exposed or sheltered from their impact. Starbucks (SBUX) stock fell in after-hours trade after the company missed second quarter earnings on both the top and bottom lines.
On the data front, consumer confidence declined for the fifth straight month, with the Conference Board’s Consumer Confidence Index for April coming in at 86, short of expectations and a significant drop from March’s 92.9 reading.
