The S&P 500 rose around 0.72% Tuesday, erasing losses for the year after Monday’s news that the Trump administration reached a 90-day agreement with China to slash reciprocal tariffs.
It’s a sharp reversal from the past few months, when the S&P 500 was down as much as 17% as investors fretted over the effects of President Donald Trump’s tariff policies. But news of the recent détente with China has eased some worries. It’s the second day in a row stocks have rebounded, after the Dow gained more than 1,000 points Monday. The S&P now stands at its highest level since mid-March.
“There are still a lot of unknowns over where tariff rates will ultimately land,” says Adam Turnquist, chief technical strategist for LPL Financial. “However, for now, investors have embraced the de-escalatory backdrop, especially the tariff reprieve deal reached with China over the weekend.”
A chip deal with Saudi Arabia announced Monday also contributed to the rally, as was a lower-than-anticipated inflation report released Tuesday. Nvidia announced Tuesday it will partner with AI startup Humain, which is owned by Saudi Arabia’s sovereign wealth fund, and will send 18,000 chips to the country.
