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TRADE DEAL OPTIMISM AND EARNINGS SEASON SEND STOCKS HIGHER

U.S. stocks ended broadly green on Tuesday as optimism that President Donald Trump’s administration will reach trade deals and de-escalate a trade war with China bolstered risk sentiment and as investors focused on earnings season.

U.S. Treasury Secretary Scott Bessent said on Tuesday that he believes there will be a de-escalation in U.S.-China trade tensions, but described future negotiations with Beijing as a "slog" that has not started yet.

The United States and Japan, meanwhile, are moving closer to an interim arrangement on trade, but many of the biggest issues are being put off.

The White House said that the Trump administration has received trade deal proposals from 18 nations while officials are meeting this week with 34 countries to discuss trade.

Investors are anxious to see trade deals that show that tariffs will not be broadly as bad as feared.

Meanwhile, earnings season is taking focus with traders particularly attuned to any signs that tariffs are impeding business decision making and potentially already hurting profits.

Shares of 3M Co MMM.N jumped 8.1% after the company beat first-quarter profit expectations but warned of a potential hit to 2025 earnings from trade tensions.

Northrop Grumman's NOC.N shares dropped 12.7% after reporting a sharp drop in profit, while RTX RTX.N fell 9.8% after the company warned that tariffs could chip away $850 million from its 2025 profits.

Financials .SPSY was the best performing S&P 500 subsector, rising 3.3% The Nasdaq Composite .IXIC was the strongest major index, gaining 2.7%, while the Dow Jones Industrial Average .DJI and S&P 500 .SPX rose 2.7% and 2.5%, respectively.

Here is Tuesday's closing market snapshot:

(Karen Brettell)

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FOR TUESDAY'S EARLIER LIVE MARKETS POSTS:

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