US stock markets closed with significant gains on Tuesday as investors processed a wave of corporate earnings reports, with a particular focus on comments regarding the impact of import tariffs.
The markets also received confirmation from Trade Secretary Howard Lutnick that US President Donald Trump will sign a decree providing a partial exemption from the new tariffs for carmakers that manufacture vehicles in the United States.
However, despite the potential reduction in tariffs, shares of car manufacturers showed little reaction. In fact, General Motors shares fell by 0.6% after the company reported strong quarterly results but withdrew its annual forecast.
The Dow Jones Index rose by 0.8% to 40,527.62 points and the S&P 500 Index increased by 0.6% to 5,560.83 points. The tech-heavy Nasdaq also gained 0.6% to close at 17,461.32 points.
US Treasury Secretary Scott Bessent predicted that China could quickly lose 10 million jobs due to the tariffs while mentioning progress in trade agreements with other nations, including Japan and India.
Spotify shares dropped 3.5% as the music streaming company reported lower-than-expected profits in the first quarter, despite a significant increase in subscribers.
Amazon shares ended slightly down following harsh criticism from the White House regarding an alleged plan to display the costs of Trump’s tariffs alongside the total product prices on its website. Amazon said it “never considered” such a move.
