Stocks Surge Amid Trade War Developments and Earnings Reports

U.S. stocks closed positively as investors navigated corporate earnings, economic data, and trade policy shifts. Key highlights included potential job losses in China due to tariffs, Trump's easing of vehicle tariffs, and mixed market reactions. Economic data showed a widening trade deficit and consumer confidence drop, impacting market expectations.

U.S. stocks ended the day with significant gains on Tuesday, bouncing back from earlier fluctuations as investors evaluated a mix of corporate earnings, economic data, and developments in trade policies. Despite projections of potential job losses in China linked to tariffs, the U.S. Treasury signaled progress in trade negotiations with Japan and India.

The global trade tensions, primarily between the U.S. and China, continue to unsettle investors, although a recent move by President Trump to soften vehicle tariffs provides some respite for automakers. However, shares remained largely unchanged, with General Motors stock slipping slightly after a strong quarterly report but a retracted annual forecast.

Looking at the economic indicators, the U.S. faced a record-high trade deficit in March, while consumer confidence plummeted to levels not seen since May 2020. Despite these challenges, some companies, including Wells Fargo and Honeywell, reported robust performance, adding a positive note to the day as markets anticipate further data and earnings reports later this week.

(With inputs from agencies.)