Wall Street Gains on Auto Tariff Speculation and Bank Profits

Wall Street experienced moderate gains fueled by potential auto tariff exemptions, strong financial sector performance, and especially positive results from Citigroup and Bank of America. However, market gains were limited by new tariff probes targeting pharmaceuticals and semiconductors, contributing to ongoing investor uncertainty and stock market volatility.

Wall Street climbed on Tuesday, driven by speculation about tariff exemptions for the auto industry and robust financial stock performances following Citigroup and Bank of America's strong quarterly results.

On Monday, President Donald Trump suggested potential exemptions from the 25% import tariffs on autos and parts. The financial index led sector advances, with Bank of America and Citigroup rising 4.1% and 2.7%, respectively, after reporting profit surges driven by increased trading revenue.

However, gains were tempered by Federal Register filings indicating ongoing administration probes into pharmaceutical and semiconductor imports, hinting at future tariffs. Healthcare stocks fell 0.3%. As investors eyed opportunities amid previous declines, market volatility persisted due to trade policy uncertainty.

(With inputs from agencies.)