US stocks climbed in early trading Tuesday, extending the market’s rebound as investors reacted positively to strong earnings from major banks, even as concerns linger over President Donald Trump’s assertive trade agenda.
Leading the gains were Bank of America and Citigroup, both rising after reporting solid first-quarter results. The strong showing wrapped up a generally positive earnings season for large financial institutions, despite executives continuing to flag heightened risks of a potential recession.
Around 20 minutes into the session, the Dow Jones Industrial Average was up 0.5% at 40,734.34. The S&P 500 advanced 0.7% to 5,442.09, and the Nasdaq Composite, driven by tech strength, also rose 0.7% to 16,954.00, according to news agency AFP.
Meanwhile, the CBOE Volatility Index (VIX), a measure of market fear, fell by 0.98 points to 29.91, down 3.17%, indicating a modest decline in market uncertainty, according to CNBS data tracker.
Earlier, Wall Street veered toward modest losses in early Tuesday trading, showing limited reaction to President Donald Trump’s latest softening of tariffs, while relief from recent bond market stress helped maintain a relatively calm tone. Futures for the S&P 500 and Nasdaq each dipped 0.3%, while Dow Jones Industrial Average futures were down 0.4%.
Despite the easing on some trade measures, the Trump administration simultaneously signaled potential new tariffs, launching an investigation into the national security risks of importing pharmaceuticals, semiconductors, and related tech products.
“You know the drill: one step forward, two steps back, then a whiplash pivot into carrot-and-stick diplomacy. It’s becoming the signature of this White House — deliver a policy gut punch, then soften the blow with selective reprieves or 90-day pauses. It’s market management by whack-a-mole,” commented Stephen Innes, managing partner at SPI Asset Management.
Bank of America shares rose 1.8% in premarket trading after beating Wall Street’s sales and revenue expectations. Major US banks have generally reported strong first-quarter earnings, thanks in part to active trading desks capitalizing on volatility from the administration’s fluctuating tariff strategy.
Johnson & Johnson also posted solid quarterly results, but its shares were down 1% before Tuesday’s opening bell.
Boeing shares tumbled 3.3% following a Bloomberg report that Chinese regulators have instructed airlines to stop taking deliveries of Boeing aircraft and to suspend procurement of aviation equipment from US firms.
United Airlines is expected to report earnings after market close.
Meanwhile, Treasury yields steadied after a volatile surge last week. The yield on the 10-year Treasury note held at 4.37%, unchanged from Monday, after spiking to 4.48% on Friday from 4.01% the previous week.
In European midday trading, Germany’s DAX climbed 0.8%, and the UK’s FTSE 100 rose 0.7%. France’s CAC 40 remained flat after early gains.
In Asia, Japan’s Nikkei 225 advanced 0.8%, closing at 34,267.54. Automakers led the rally, with Toyota Motor Corp. gaining 3.7% and Honda Motor Co. rising 3.6%. Sony Corp. also added 2.2%.
Australia’s S&P/ASX 200 edged up 0.2% to 7,761.70, and South Korea’s Kospi rose 0.9% to 2,477.41.
In China, markets showed mixed signals. Hong Kong’s Hang Seng inched up 0.2% to 21,466.27, while the Shanghai Composite also gained 0.2%, ending at 3,267.66.
In energy markets, US benchmark crude slipped 48 cents to $61.05 per barrel, while Brent crude fell by the same margin to $64.40. The International Energy Agency lowered its global oil demand forecast for the year amid deepening trade tensions. US crude prices have dropped around 14% in April.
Currency markets also saw movement, with the US dollar slipping to 142.87 Japanese yen from 143.04 yen, and the euro falling slightly to $1.1330.
