US Stock Markets Soar Amid Trade Negotiation Optimism

US stock indexes closed higher on Tuesday, bolstered by gains in tech stocks like Nvidia. Investors are optimistic about upcoming trade negotiations between the US and China. Factory orders dropped sharply in April, indicating tariff impacts on the economy. Wells Fargo saw gains after restrictions were lifted.

U.S. stock indexes closed on a high note Tuesday, driven by gains in tech stocks, particularly chipmakers like Nvidia, as investors anticipate potential trade negotiations between the U.S. and its partners. This development comes as President Donald Trump and China's Xi Jinping are set to discuss tariffs, raising hopes for market stability.

The Trump administration is pushing for rapid trade offers from countries by Wednesday, aiming to expedite talks before a looming deadline. Market sentiments were buoyed by the administration's restraint on larger-than-expected tariffs, which analysts say would have risked a recession.

Factory orders saw a sharp decline in April, reflecting the broader economic impact of tariffs. In contrast, financial institutions like Wells Fargo experienced gains following regulatory relief. Meanwhile, tech stocks like Broadcom hit record highs, while consumer-related companies like Kenvue faced challenges due to tariff uncertainties.

(With inputs from agencies.)