U.S. stocks rebounded strongly, nearly erasing Monday's losses, as traders bet on the White House reaching significant trade agreements with key economic partners. The S&P 500 index rose 2.5%, marking its best single-day gain in nearly two weeks, driven by news reports suggesting easing tariff tensions as the U.S. makes progress on agreements.
Tech giants saw widespread gains, while 3M (MMM) surged 8.1% after maintaining its full-year guidance despite acknowledging new risks from trade wars. On the other hand, aerospace and defense giant RTX Corp. (RTX) dropped 9.8% due to significant tariff-related risks to its operating profit. Verizon Communications Inc. (VZ) reported a larger-than-expected decline in first-quarter mobile phone users, yet its stock closed up 0.6%.
Tariff-related news continued to influence market movements, with investors seeking trading clues amid the crisis. White House Press Secretary Caroline Levitt indicated that tariff negotiations are progressing positively. Reports suggest the White House is nearing basic trade agreements with Japan and India.
Despite the light trading volume, which sometimes amplifies volatility, experts advise caution against overreacting to single-day fluctuations. Analysts predict the S&P 500 will fluctuate between recent lows and approximately 5,400 points, with long-term opportunities arising from current market weakness.
