The S&P 500 experienced gains on Tuesday, bolstered by a rally in Tesla stocks as trade negotiations between the U.S. and China showed promise. Investors are optimistic that the talks will lead to improved trade terms, potentially easing tensions that have impacted global markets this year.
U.S. Commerce Secretary Howard Lutnick indicated that discussions are progressing well, expressing hope for a resolution by Tuesday night, though the talks may extend into Wednesday. Recently, the U.S. stock market has seen a strong recovery from a spring slump caused in part by President Trump’s sweeping tariffs.
Wall Street remains cautiously hopeful for a resolution to trade tariffs, with the S&P 500 nearing its previous peaks. While Tesla shares rose, Microsoft saw a slight dip. As tech giants like Alphabet expand their cloud services, investors await U.S. economic data for clues about the Fed’s next moves. Meanwhile, the World Bank lowered its global growth projections, citing trade uncertainties.