The U.S. stock market saw gains on Tuesday as investors remained hopeful about a potential trade deal. The White House suggested that a major agreement could be announced soon. The Dow Jones Industrial Average rose 300.03 points, or 0.75%, to 40,527.62.
The S&P 500 gained 0.58% to 5,560.83. Both indexes marked their sixth straight day of gains. The Nasdaq Composite added 0.55% to 17,461.32.
Commerce Secretary Howard Lutnick said a trade deal was close to completion but needed final approvals from the foreign government involved. General Motors (GM) stock fell 0.6% while Apple inched up 0.5%. Amazon faced slight declines after concerns about displaying tariff surcharges on its discount store, Amazon Haul.
Earnings reports heavily influenced market sentiment. About one-third of S&P 500 companies are set to report earnings between Monday and Friday, with a focus on Big Tech. Microsoft reports on Wednesday, while Apple and Amazon report on Thursday.
Ross Mayfield, an investment strategist at Baird, said the markets are in a holding pattern, waiting for clarity on trade. He suggested the S&P 500 could fluctuate between 5,100 and 5,700 without resolution. John Paulson projects gold could rise to nearly $5,000 per ounce by 2028.
Stocks rise as trade deal nears
The metal recently reached a record high of $3,500.05 per ounce. Netflix is on track for its eighth positive session after a strong earnings beat on April 17.
Shares are up nearly 20% for the month of April. Economists predict a contraction in the U.S. economy for Q1. Goldman Sachs and others have adjusted GDP forecasts downward following a record trade deficit.
Gilead Sciences agreed to pay $202 million to settle claims related to its HIV drug prescriptions. The company was accused of using speaker programs as kickbacks to doctors. Several stocks hit 52-week lows on Tuesday, reflecting market volatility.
However, some companies continue to trade at historical highs. Significant movers included Spotify, which dropped 3.8% due to disappointing Q1 results, and Ford, whose shares declined 2% amid concerns about tariffs. A telehealth company surged 26% due to news about a new product.
Wolfe Research warned of potential stagflation, which could worsen economic challenges. Deutsche Bank and RBC Capital Markets suggested that while short-term downturns are possible, long-term recoveries are expected. The S&P 500 is anticipated to trade within a wide range, potentially falling to 4,600 before recovering.
RBC Capital Markets also forecasted ongoing market volatility but sees pullbacks as short-lived.
