U.S. Stocks Rally as Trade Tensions Ease and Earnings Impress

U.S. stocks rebounded as investors focused on earnings and potential easing of U.S.-China trade tensions. Treasury yields dipped, while the dollar rose. The IMF cut global growth forecasts, adding to concerns over tariffs. Major stocks like Apple and Tesla saw gains, and oil prices recovered.

U.S. stocks experienced a robust rebound on Tuesday as investors shifted their focus to earnings reports amid promising signs of easing trade tensions between the U.S. and China. This came after U.S. Treasury Secretary Scott Bessent indicated potential de-escalation in the ongoing trade disputes.

In parallel, the International Monetary Fund revised global growth forecasts downward, citing the adverse impact of U.S. tariffs. Meanwhile, President Trump's criticism of Federal Reserve Chair Jerome Powell on interest rates contributed to apprehensions regarding U.S. economic prospects.

The market witnessed substantial gains with major indices showing impressive upswings and growth in mega-cap stocks such as Apple and Tesla. Oil prices also saw an uptick, supported by sanctions on Iran. Despite these positive movements, concerns linger over long-term economic stability.

(With inputs from agencies.)