Nasdaq 100 Close to Erasing Losses Since April 2 After Rebound
(Bloomberg) — US stocks closed higher Tuesday, with the technology-heavy Nasdaq 100 mere points away from erasing all its losses since April 2, as traders interpreted US President Donald Trump’s plan to ease the impact of his auto tariffs as a positive sign in the ongoing trade turmoil.
The S&P 500 Index rose 0.6%, extending its winning streak to a sixth straight session and marking the longest such run since November. The equity benchmark needs to rise another 1.9% to wipe out its own losses since early April, when Trump triggered the latest trade-focused market turmoil with his “Liberation Day” tariff announcement. The Nasdaq 100 advanced 0.6% on Tuesday, Dow Jones Industrial Average rose 0.8% and Russell 2000 Index climbed 0.6%.
Among individual stocks, Amazon.com Inc. dipped earlier in the day after White House Press Secretary Karoline Leavitt told reporters that the company’s reported decision to display the impact of tariffs on pricing was a “hostile” and political act. The stock pared losses and closed down 0.2% after the online retailer said it’s not taking this action, and that it was never a consideration for its main Amazon site.
General Motors Co. shares slipped after the carmaker pulled its 2025 earnings guidance and put $4 billion in share buybacks on hold, citing US tariffs. JetBlue Airways Corp. was the latest US airline to withdraw its outlook, noting macroeconomic uncertainty. PayPal Holdings Inc. left its full-year forecast unchanged, despite reporting a stronger-than-expected first quarter, citing “uncertainty in the global macro environment.”
Meanwhile, United Parcel Service Inc. said it expected to cut 20,000 jobs this year and close dozens of facilities.
“Stocks are on hold in the hopes of one or two trade deals that will create the template” for further agreements, said Ivan Feinseth, chief investment officer at Tigress Financial Partners.
Trump is scheduled to sign an executive order easing the impact of his auto tariffs, preventing duties on foreign-made vehicles from stacking on top of other levies and lessening charges on parts from overseas used to make vehicles in the US. The Financial Times reported that the president is going to unveil more tariff during a trip to Michigan.
Also, Treasury Secretary Scott Bessent at a White House press briefing said the administration was “very close” on a trade deal with India.
As a volatile month for the stock market draws to a close, the S&P 500 has managed to bounce back over the past few sessions. Data from Citigroup strategists show that the earnings season has boosted positioning momentum in US stocks, leaving exposure levels near neutral.
Still, market pros warn that risks still lurk, and they urge investors to stay cautious.
HSBC strategists lowered their year-end target for the S&P 500 to 5,600 from 6,700, to reflect the impact of slower US growth and tariff pressure on earnings.
“We expect the market narrative will flip-flop between recession and stagflation until tariff turmoil subsides, the Fed starts easing, and/or inflationary pressures fail to build up,” the strategists led by Nicole Inui wrote in a note to clients.
Economic releases on Tuesday included JOLTS data on job openings in March and a report on April consumer confidence. Both came in below expectations. Earlier, the Commerce Department said the US merchandise-trade deficit unexpectedly widened in March to a record as companies continued importing goods to get ahead of tariffs, signaling a large hit to the economy in the first quarter.
Geopolitics also remain tense, with President Vladimir Putin insisting that Russia must take control of four regions of Ukraine it doesn’t fully occupy as part of any agreement to end the conflict, according to three people in Moscow familiar with the matter.
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