U.S. stocks rallied on Tuesday, driven by strong earnings reports and hopes for trade deals, despite ongoing concerns about tariffs and economic growth.
U.S. stocks experienced significant gains on Tuesday, with the S&P 500 rising 0.6% and nearing its all-time high. The Dow Jones Industrial Average increased by 170 points (0.4%), while the Nasdaq composite saw a 1% rise. Dollar General led the gains, jumping 14.3% after exceeding profit and revenue expectations. However, the company cautioned about uncertainties due to tariffs. Many companies have revised their financial forecasts downward due to tariff-related uncertainty. The OECD projected a 1.6% growth for the U.S. economy in 2023, down from 2.8% in 2022. Despite tariff-related pessimism, the impact on the economy has been moderate so far, with a solid job market and relatively low inflation. A report showed a surge in job openings in April, suggesting a healthy labor market. Hopes remain high for trade deals that could lower tariffs, particularly with China, although a Chinese spokesperson denied knowledge of a planned meeting between Presidents Trump and Xi. Constellation Energy rose 0.7% following a deal with Meta Platforms. Treasury yields remained relatively steady, with the 10-year Treasury yield at 4.47%. Global stock markets showed mixed results, with Hong Kong's Hang Seng index rising 1.5% despite slowing Chinese manufacturing activity. South Korean markets were closed due to a snap presidential election.
