The U.S. stock market surged on Tuesday, snapping out of a weeks-long slump thanks to renewed optimism on the trade front. The Dow Jones rose by 300 points, with the S&P 500 up 0.6% and the Nasdaq advancing 0.5%. The gains came after days of investor hesitation tied to economic instability and political headwinds during President Donald Trump’s return to office.

Markets perked up after U.S. Commerce Secretary Howard Lutnick disclosed in a live interview that a trade deal had been completed with a foreign partner — though he stopped short of naming the country or detailing the agreement. Still, the ambiguity didn’t stop traders from reacting positively, interpreting the news as a rare bright spot amid ongoing policy turbulence.

However, it’s worth noting that Trump’s current term has marked one of the worst starts for the S&P 500 in over 50 years, trailing even Nixon’s rocky entry in 1973. The 100-day performance metric — often symbolic — has weighed on investor confidence as volatility remains high.

Automakers Get a Breather

Adding to the day’s developments, Trump signed an executive order halting layered tariffs on automotive imports. The measure is expected to reduce confusion and costs across the U.S. auto industry. GM, which exceeded expectations in its earnings report, pulled back its 2025 guidance and paused buybacks until tariff clarity improves.

Elsewhere, Amazon reversed morning losses after it quashed rumors that it would label products with new tariff-related fees. The White House had slammed the potential move as “politically hostile,” but Amazon’s denial helped calm markets.

Earnings Pulse: Honeywell Lifts the Dow

Corporate earnings remained a key focus for investors. Honeywell jumped 5% after a solid earnings beat, offering a much-needed lift to the Dow. Spotify and Coca-Cola posted results before markets opened, while Starbucks was due to report after the bell.

Economic Warnings Persist

Despite the positive trading day, the underlying economy continues to flash warning signs. Consumer sentiment declined for the fifth consecutive month, and job vacancies remain stuck near four-year lows — raising questions about the strength of the labor market.

Bitcoin Flatlines Near $95K

Bitcoin remained steady around the $95,000 mark, mirroring the broader mood of cautious optimism. Traders are closely watching how Trump’s policy tone in his upcoming 100-day speech might influence the digital asset landscape.

Final Word

Markets found a spark in trade headlines and corporate strength, but political unpredictability and soft economic data continue to cast a long shadow. Until more clarity emerges — particularly from the White House — investors may see more short-lived rallies than sustained momentum.