The Dow Jones Industrial Average surged on Tuesday, buoyed by optimism surrounding a potential trade breakthrough, with the index reaching session highs after the White House signaled that a major international agreement was nearing completion.
The blue-chip index climbed 300.03 points, or 0.75%, to close at 40,527.62. The S&P 500 added 0.58% to finish at 5,560.83, and the Nasdaq Composite advanced 0.55% to 17,461.32. Both the Dow and S&P 500 notched their sixth consecutive day of gains, marking their longest winning streaks since July and November, respectively.
Commerce Secretary Howard Lutnick fueled the rally during an afternoon interview with CNBC, declaring, “I have a deal done, done, done, done,” while noting final approval was pending from the unnamed country’s prime minister and parliament.
Markets had traded sideways for most of the session until Lutnick’s remarks spurred investor enthusiasm.
Shares of companies sensitive to trade tensions, including General Motors and Apple, trimmed earlier losses in the wake of the comments. GM, which earlier in the day announced it was suspending share buybacks and reviewing its forward guidance amid tariff uncertainty, still closed down 0.6%. Apple ended 0.5% higher.
Meanwhile, Amazon remained under pressure after White House press secretary Karoline Leavitt criticized its reported plan to display tariff surcharges on its Amazon Haul platform, calling the move “hostile and political.” Amazon later clarified the plan was not going forward. Its stock recovered slightly but still closed down 0.2%.
“The trade issue is front and center—until that’s resolved, little else will significantly move markets,” said Ross Mayfield, investment strategist at Baird. He suggested the S&P 500 could remain range-bound between 5,100 and 5,700 in the near term.
Investors are also navigating a heavy week of corporate earnings, with about a third of S&P 500 firms slated to report between Monday and Friday. Tech giants are in the spotlight, with Meta Platforms and Microsoft reporting Wednesday, followed by Apple and Amazon on Thursday.
“I don’t expect this earnings season to deliver any major surprises—positive or negative,” Mayfield added. “We’re dealing with a policy-driven downturn and likely need a shift in policy to reverse course.”
Contributing to the Dow’s gains, Honeywell saw its shares jump 5.4% after the company reported stronger-than-expected quarterly results, beating analyst forecasts.
