Stocks rallied Tuesday on hopes that U.S.-China trade tensions could ease soon, as investors recovered much of the steep declines suffered in the previous session.
The Dow Jones Industrial Average rose 965 points, or 2.5%. The S&P 500 gained 2.4%, and the Nasdaq Composite climbed 2.6%.
The major averages spiked on news that Treasury Secretary Scott Bessent told a group of investors Tuesday that there “will be a de-escalation” in the trade war with China. “No one thinks the current status quo is sustainable,” he said Tuesday during a meeting with investors hosted by JPMorgan Chase, according to a person in the room. The meeting was first reported by Bloomberg News.
At its peak, the Dow was up more than 1,000 points on the day. However, stocks eased from those levels as Bessent also noted that, “If we walk out the door of negotiations and signed something in two or three years that looked like that, I would think that it’s a huge win.”
Stocks closely tied to China got a boost on the news. The iShares China Large-Cap ETF (FXI) and the iShares MSCI China ETF (MCHI) were both up about 3%.
“Bessent is obviously trying to send a signal with that comment, and that signal would seem to be that we know this is hurting markets and we’re in a hurry to wrap it up,” said Jed Ellerbroek, portfolio manager at Argent Capital Management. “The market will interpret that as good news that will cause it to rally and adjust its expectations for where the final resting place for this trade war is in a couple months.”
Tuesday’s gains erased most of sharp losses suffered in the previous session. The Dow dropped more than 970 points, while the S&P 500 and Nasdaq both slid more than 2%.
Rising trade fears have sent equities tumbling in recent weeks. Since April 2, when President Donald Trump unveiled a slate of tariffs on imported goods from many countries, the S&P 500 is down more than 7%.
Investors grew increasingly uncertain after Trump posted on Truth Social that the economy would slow if the Federal Reserve did not cut interest rates. In the latest of multiple recent posts calling out Chair Jerome Powell by name, he called the Fed chief “Mr. Too Late” and a “major loser.”
Trump hinted at Powell’s “termination” last week, an unprecedented action that White House economic advisor Kevin Hassett said the president’s team was currently studying. Powell has said he cannot be fired under law and intends to serve through the end of his term in May 2026.
“Lots of uncertainty, not lots of answers, kind of a frustrating environment today for investors,” Ellerbroek added. “The one feeling that I feel like I can identify is the longer we remain in this limbo, the worse it gets for the economy.”
Short sellers in Tesla are up $11.5 billion in 2025 and see more coming, S3 Partners says
Short sellers in Tesla have made $11.5 billion in 2025 and are counting on even more gains, according to short selling research specialist S3 Partners. Tesla reports first quarter financial results after the market close Tuesday.
“A technical ‘cup and handle’ formation in short interest may signal further bearish pressure. With options pricing a 9% move [up or down], and shorts already sitting on $11.5B in YTD gains, positioning remains heavily tilted against the stock,” according to S3’s Matthew Unterman.
Tesla is down 44% so far in 2025, while the number of shares sold short — borrowed and sold in the hope that they’ll be repaid later, at a lower cost — has climbed by 10 million, or 15%, S3 said in a note out Tuesday. Tesla “short interest had been steadily trending down in 2024 hitting lower highs, and lower lows,” S3 said. But that trend’s reversed since the start of 2025 and the setup now for short sellers “can be an indicator that short interest/bearish sentiment is about to potentially increase.”
Tesla is the third-most shorted stock in the S&P 500, based on a notional short position of $17.6 billion, trailing only Nvidia at $24.6 billion and Apple at $22.2 billion, the researcher said.
— Scott Schnipper
Josh Brown recommends that investors not ‘go chasing bear market rallies’ in current macro environment
Investors should be cautious about taking advantage of the recent rise in the market, according to Ritholtz Wealth Management CEO Josh Brown.
“Sentiment is extremely washed out, and it’s so washed out that these 800-point intraday Dow rallies are exactly what you should expect in that environment,” he said on CNBC’s “Halftime Report” on Tuesday. “The problem is the presence of washed-out sentiment alone doesn’t really give you a longer-term respite from the things that everyone is worried about.”
“This is not an environment where you want to go chasing bear market rallies,” the CEO also said.
Brown added that there is often not a “sustainable” bottom when washed-out sentiment is still a topic of conversation, asserting that it has to get to the point where it “just becomes a given that everybody is bearish.”
“I would love to tell you that I think we’re there, but I just don’t,” he continued.
— Sean Conlon
Alpine Macro believes that the ‘tariff standoff is peaking’
Although tariff-induced uncertainties have weighed markets down in recent weeks, Alpine Macro believes that investors can afford to be optimistic going forward.
“The tariff standoff is peaking, with the worst policies likely to be abandoned to avoid further economic and financial fallout,” the investment research firm wrote. “At a minimum, investors should avoid growing more bearish on risk assets, which likely already reflect the worst-case outcomes.”
— Lisa Kailai Han
The U.S. equity market is too big to fail, Piper Sandler says
Stocks have melted down in recent weeks on the back of heightened, tariff-induced uncertainty.
But there’s some good news ahead, Piper Sandler wrote in a Tuesday note — the U.S. equity market has become too big to fail.
“The size of U.S. equities is double the size of U.S. GDP and 60% percent of US households own stocks. The average stock market decline in a recession is 30%; a loss of that magnitude would equate to more than 60% of U.S. GDP!” the firm said. “While markets certainly will continue to rise and fall, the pain threshold where policymakers step in to support collapsing markets is probably lower than it used to be.”
— Lisa Kailai Han
Danaher’s earnings beat bodes well for the bioprocessing industry, portfolio manager says
Life sciences company Danaher popped 5% on Tuesday after posting a fiscal first-quarter earnings and revenue beat.
In its last quarter, the company earned an adjusted $1.88 per share on revenue of $5.74 billion. Analysts polled by FactSet had expected earnings of $1.63 per share and revenue of $5.57 billion.
Jed Ellerbroek, portfolio manager at Argent Capital Management, said that Danaher’s earnings beat bodes well for the overall bioprocessing sector. Ellerbroek currently has an overweight rating on the name and believes shares could rise to $260, implying a potential upside of nearly 41% for the stock.
“Bioprocessing has done really poorly for the last two years, but it seems like we finally pulled out of that industry’s recession — and it’s a great time for that, because the rest of the world is probably going into a recession,” he told CNBC. “I think Danaher is a really good company. They reported a good first quarter. Their guidance looks conservative to me for the rest of the year, and I think that the company has good things ahead for it.”
— Lisa Kailai Han
Stocks making the biggest moves midday
These are some of the stocks making the biggest moves midday:
3M — The manufacturing conglomerate jumped 8% on a first-quarter earnings beat. 3M earned an adjusted $1.88 per share on $5.78 billion of revenue, beating the LSEG consensus forecasts of $1.77 per share and $5.76 billion in revenue.GE Aerospace — Shares gained 5% after GE Aerospace’s first-quarter earnings per share topped forecasts. Adjusted earnings came in at $1.49 per share, ahead of the $1.27 per share figure anticipated by analysts polled by LSEG.CoreWeave – Shares of the artificial intelligence cloud company jumped more than 7% aftermultiple analysts initiated coverage of the stock with a buy or overweight equivalent rating.Click here for the full list.
— Alex Harring
Bank of America cuts Tesla target ahead of earnings
Bank of America slashed its price target on Tesla Tuesday ahead of the EV company’s highly scrutinized quarterly earnings after the bell.
The Wall Street firm cut its forecast to $305 from $380, with the new target still 34% higher than Monday’s close of $227.5. The bank said it will look for commentary on tariffs.
“Tesla manufactures all of their vehicles for North America in the US, which significantly reduces tariff risk,” Bank of America said. “However, we note that there is still risk related to parts (~30% parts are non-US), which could be substantial especially for those input materials that could be connected to China, such as rare earths and raw material for batteries.”
— Yun Li
Bitcoin reclaims $90,000, surpasses gold on a monthly basis
Romain Costaseca | Afp | Getty ImagesBitcoin reclaimed the $90,000 level for the first time since March as investors jumped into the crypto for a second day amid continued stock market turbulence and a falling dollar.
The price of bitcoin was last higher by more than 3% at $90,282.00, according to Coin Metrics, bringing its 2-day gain to more than 7%. Earlier, it rose as high as $91,555.18, its highest level since March 6. Bitcoin is off its April low now by about 22%.
The cryptocurrency was highly vulnerable to stocks’ tariff-fueled volatility earlier this month but has been decoupling from risk assets in the past week or so. As of Tuesday, it’s up more than 9% in April, surpassing gold’s 8% gain in the same period. The S&P 500 and U.S. dollar index have each lost 5% month to date.
— Tanaya Macheel
Bessent sees likely tariff de-escalation with China, Bloomberg reports
Tom Williams | Cq-roll Call, Inc. | Getty ImagesTreasury Secretary Scott Bessent arrives for a meeting on the House side of the U.S. Capitol on Tuesday, April 8, 2025.Treasury Secretary Scott Bessent said at a JPMorgan Chase event that the tariff situation with China is unsustainable and that he expects a de-escalation, according to a Bloomberg News report.
The event where Bessent spoke was not open to the public or media. The Treasury Department did not immediately respond to Bloomberg’s request for comment.
Bessent also said that negotiations with China haven’t started yet but a deal is possible, according to the report.
The U.S. stock market added to its gains for the day around the time the report was published.
— Jesse Pound
Lower earnings revisions will impede any equity recovery, JPMorgan says
Lower earnings revisions are likely to continue this reporting season, challenging the equity market, according to JPMorgan.
“Weekly earnings revisions have turned negative again in both the US and in Europe, and are decelerating sharply,” Mislav Matejka wrote Monday. “We think this is likely to continue for the time being. Typically, reducing earnings projections are consistent with compressing P/E multiples.”
“Both of these are likely to pressure the equity performance over the next months, and arrest the recent equity recovery, which was aided in part by the oversold technical positioning,” Matejka added.
— Sarah Min
3 stocks in the S&P 500 hit new all-time highs
During Tuesday’s trading session, three stocks in the S&P 500 hit new all-time highs.
Names that achieved this milestone included:
Coca-Cola trading at all-time high levels back to its IPO in 1919Kroger trading at all-time highs back to its IPO in January 1977Atmos Energy trading at all-time high levels back to the Energas spin-off from Pioneer Corp in 1983— Christopher Hayes, Lisa Kailai Han
RTX, defense stocks dive
Cheng Xin | Getty Images News | Getty ImagesRTX shares plunged more than 8% after the defense contractor and commercial aerospace supplier said it expected a hit from President Donald Trump’s tariff policy.
CFO Neil Mitchill told analysts on Tuesday that the levies could add up to $850 million this year. This estimate does not include corporate mitigation steps the firm can take to lessen costs, Mitchill said.
Those comments overshadowed an otherwise better-than-expected earnings report for RTX’s first quarter.
Other defense stocks also dropped in the session. Northrop Grumman tumbled more than 11% after revenue missed analyst expectations in the first quarter, while Lockheed Martin slipped more than 2% despite first-quarter earnings surpassing the Street’s consensus forecasts.
— Alex Harring, Leslie Josephs
Only 2 components trade negative in the Nasdaq 100
During Tuesday’s broader rally, only two components of the Nasdaq 100 were trading in the negative: Old Dominion and Baker Hughes.
Verizon was the only stock trading lower in the blue-chip Dow Jones Industrial Average.
— Gina Francolla, Lisa Kailai Han
Economy and capital markets activity have slowed, Goldman’s Solomon says
Goldman Sachs CEO David Solomon said on “Squawk Box” that the U.S. economy has slowed in the fact of tariffs but is not necessarily in a recession.
“I don’t know whether at the moment we’re growing 1%, .5, zero, but growth has slowed,” Solomon said.
Similar, the bank executive said that capital markets demand among Goldman Sachs clients is lower but still ongoing.
“There’s no question that capital markets activity is slower, but it’s not zero,” Solomon said.
— Jesse Pound
Gold hits fresh intraday all-time high on Tuesday morning
Brendon Thorne | Bloomberg | Getty ImagesOne kilogram gold bars at the ABC Refinery smelter, operated by Pallion, in Sydney, Australia, on Thursday, April 17, 2025.On Tuesday morning, Gold’s June-dated futures hit a fresh intraday all-time high of 3,509.9.
This came close to eclipsing the intraday inflation-adjusted all-time high of 3,588.49 and traded above the inflation-adjusted record settle of 3,428.18, both from Jan. 21, 1980.
The SPDR Gold Shares ETF (GLD) traded at an all-time high back to its inception in November 2024. The Gold Miners ETF (GDX) hovered near its highest level since October 2012.
— Gina Francolla, Lisa Kailai Han
Stocks claw back losses on Tuesday morning
Michael M. Santiago |Getty ImagesTraders work on the floor of the New York Stock Exchange during morning trading on April 22, 2025 in New York City.Stocks rose on Tuesday morning, recovering some of their Monday losses.
The Dow Jones Industrial Average gained 400 points, or 1%. The S&P 500 also rose 1%, while the tech-heavy Nasdaq Composite added 1.1%.
— Lisa Kailai Han
Bitcoin ETFs log highest daily inflows since January
U.S. ETFs that track the price of spot bitcoin logged $381.4 million in inflows on Monday. That was their biggest daily inflow since Jan. 30, when they posted $588.2 million.
That was their fourth day of inflows in the past five trading sessions. In that period, bitcoin, which was more vulnerable to the earlier stock market sell-offs in the month, began decoupling from equities and is now catching up to gold’s performance on a month-to-date basis.
The cryptocurrency is now up 7% in April, compared to gold’s more than 10% gain in that time, while the S&P 500 has lost 8%.
— Tanaya Macheel
Barclays downgrades Texas Instruments amid U.S.-China tariffs
Rising trade tensions between the U.S. and China could lead to a pullback in shares of semiconductor name Texas Instruments, according to Barclays.
Shares fell more than 1% in premarket trading Tuesday after analyst Tom O’Malley downgraded the stock to underweight from equal weight and cut its price target to $125 from $180, implying more than 14% downside potential, as of Monday’s close.
“Tariffs could push local Chinese customers to move to domestic analog producers over U.S. suppliers who will offer higher prices,” the analyst wrote. “China had already initiated a concerted effort to domestically produce both power and analog semiconductors via its China for China strategy implementation and we think they would see more success.”
The downgrade comes as President Donald Trump has imposed tariffs of up to 245% on select Chinese imports. Meanwhile, China has since retaliated with 125% duties on U.S. goods, up from the 84% tariffs announced earlier this month.
Over the past month, Texas Instruments shares have fallen more than 18%, lagging the broader market. The stock has also plummeted more than 26% in the past three months.
— Sean Conlon
Goldman Sachs downgrades Macy’s
Eduardo Munoz Alvarez | Corbis News | Getty ImagesPeople walk around the Macys Flagship store in New York City on January 14, 2025.Goldman Sachs is stepping to the sidelines on Macy’s amid macro uncertainty, downgrading the department store to neutral from buy.
“Historical data suggests department store sales consistently underperform during economic downturns, and we believe the current environment, characterized by slowing GDP growth and inflationary stickiness, warrants caution,” analyst Brooke Roach said in a note Monday.
Macy’s may not see a direct impact from tariffs, but has margin risk from vendor costs, she added.
Roach also lowered her price target to $12 from $17, suggesting 11.5% upside from Monday’s close. Shares are down 36% year to date.
— Michelle Fox
Lockheed Martin, Verizon, Amazon among stocks moving in premarket trading
Gary Cameron | ReutersFILE PHOTO: The engine and tail section of a Lockheed Martin F-35 Lightning II fighter jet is seen in its hanger at Patuxent River Naval Air Station in Maryland October 28, 2015.Check out the companies making headlines before the bell.
GE Aerospace — The stock moved more than 4% higher after GE Aerospace reported adjusted earnings of $1.49 per share, topping the $1.27 per share anticipated by analysts polled by LSEG. Revenue, however, came in just shy of expectations.Lockheed Martin — Shares of the defense contractor jumped more than 3% after Lockheed posted a strong first-quarter profit and reaffirmed its forecasts for the year, driven by resilient demand for its missile systems and fighter jets. Lockheed reported total revenue of $17.96 billion in the first quarter, up 4.5% from a year earlier.Verizon — Shares wireless network operator declined more than 4% after Verizon said it lost more postpaid net phone subscribers during the last quarter than were expected.For more, read here.
— Pia Singh
Deutsche Bank cuts price target for Nvidia
Josh Edelson | AFP | Getty ImagesNvidia CEO Jensen Huang delivers the keynote address at the GTC AI Conference in San Jose, California, on March 18, 2025.Deutsche Bank trimmed its price target on Nvidia, citing the new restrictions on chip shipments to China that led to a $5.5 billion charge for the company.
Analyst Ross Seymore lowered his price target to $125 per share from $135, saying in a note to clients that the restrictions could have meaningful impact on earnings.
Shares of Nvidia have already fallen more than 13% since announcing that charge on April 15.
“While ests being de-risked for China and the resulting valuation being at a meaningful discount vs historical averages … is incrementally appealing, uncertainties surrounding the sustainability of AI-related capex appear to be rising given the current trade war,” Seymore’s note said.
The new Deutsche Bank target is still about 29% above where the stock closed Monday. The firm has a hold rating on Nvidia.
— Jesse Pound
Redburn Atlantic downgrades shares of Stellantis, citing tariff impacts
Redburn Atlantic is growing less bullish on a Detroit automaker in the wake of President Donald Trump’s 25% tariffs on imported vehicles.
Shares of Stellantis fell more than 1% in the premarket on Tuesday after analyst Adrian Yanoshik downgraded the stock to neutral from buy, saying he’s doing so “until conditions improve for greater U.S. sales stability.”
“Production cuts and falling sales rates will likely follow U.S. auto tariffs,” the analyst wrote in a Tuesday note. “Cost inflation ratchets up our near-term caution across the sector.”
Yanoshik estimates that the net tariff costs to the “Detroit Three” of Stellantis, Ford and General Motors could reach $12 billion. That comes as analysts have projected that Trump’s auto tariffs will lead to more than $100 billion in increased costs for the industry.
— Sean Conlon
3 reasons why the market is bouncing, per Vital Knowledge
Charly Triballeau | Afp | Getty ImagesTraders work on the floor of the New York Stock Exchange (NYSE) at the opening bell on April 10, 2025, in New York City.Adam Crisafulli of Vital Knowledge highlighted three reasons why the market may be bouncing Tuesday:
“1) technical support after the SPX held the ~5100 level on Mon; 2) some optimistic rhetoric about the potential for a US-India trade deal (Vance is in India now on a multi-day visit); and 3) some voices of support for Powell and Fed independence from Republicans in Congress.”
— Fred Imbert
UBS says the AI rally will continue from here
UBS says it is not the time yet to give up on tech stocks.
“Tech stocks has come under renewed pressure as U.S. expands its chip export curbs while tariff uncertainty remains elevated,” wrote strategist Sundeep Gantori. “But while volatility is likely to remain in the near term, we think solid fundamentals of the AI growth story will drive the sector’s long-term outperformance.”
The strategist added that he expects global tech earnings to grow by the low teens in 2025, while the artificial intelligence adoption rate could cross 10% by year-end.
— Lisa Kailai Han
See the stocks moving after hours
These are some of the stocks making notable moves after hours on Monday:
BOK Financial — The Oklahoma bank’s shares slid 3% after earnings per share for the first quarter missed Wall Street expectations. BOK earned $1.86 per share, while the consensus estimate of analysts polled by FactSet came in at $1.99 per share.Calix — The technology services stock jumped 14% on better-than-anticipated earnings for the first quarter and upbeat current-quarter guidance. MongoDB — Shares retreated 2% after the developer data platform said Srdjan Tanjga was resigning as interim chief financial officer, effective May 8.See the full list here.
— Alex Harring
Stock futures are little changed
Futures tied to the Dow, S&P 500 and Nasdaq 100 all traded near flat shortly after 6 p.m. ET Monday night.
— Alex Harring
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