U.S. Stocks Surge Amid Earnings Reports and Tariff Tensions

U.S. stocks rebounded significantly as earnings reports provided relief amidst fears of a recession stemming from U.S. Federal Reserve policies. Despite ongoing tariff issues, the S&P 500 saw gains, propelled by strong earnings reports from companies like 3M Co, amid a volatile economic landscape.

On Tuesday, U.S. stocks staged a robust recovery, driven by encouraging quarterly earnings reports that helped investors overlook President Donald Trump's recession warnings if the Federal Reserve refrains from cutting interest rates. This warning threatened the central bank's autonomy, sparking temporary market instability.

After facing weeks of pressure from the White House's unpredictable tariff actions, the S&P 500 climbed over 2%, including a broad-based rally that lifted all three major indices. Notably, the tech-heavy Nasdaq recently confirmed its bear market status, set off by tariff concerns that continue to loom over the market.

As the earnings season progresses, notable corporations like 3M Co exceeded profit expectations, while others like Northrop Grumman and RTX faced challenges linked to tariffs. Overall, the Dow Jones, S&P 500, and Nasdaq recorded solid gains, showcasing investor optimism amid economic uncertainty.

(With inputs from agencies.)