Tech Stocks Boost Wall Street Amid Tariff Tensions

The U.S. stock market rebounded with the help of tech giants and Tesla, despite concerns over new tariffs from President Trump's administration. The S&P 500 ended the first quarter down by 4.6%, while tech stocks led a brief recovery amid economic uncertainty and potential recession fears.

U.S. stock indexes rallied from early session lows on Tuesday, driven by a surge in heavyweight technology stocks and a significant climb in Tesla's shares. Investors are focused on forthcoming U.S. tariffs announcements expected on Wednesday, adding to the recent volatility in financial markets sparked by widespread tariff plans.

Despite closing the first quarter 4.6% down, marking the worst quarter since July 2022, tech stocks like Microsoft, Amazon, and Nvidia provided a much-needed lift, signaling cautious optimism among investors. Tesla's shares notably jumped by 5.9%, highlighting confidence ahead of its vehicle delivery report.

Concerns loom over U.S. economic performance with inflation fears rising due to potential new tariffs and a declining manufacturing sector. Meanwhile, economic analysts, including Goldman Sachs, suggest the likelihood of a recession is increasing, pointing to anticipated interest rate cuts as a possible countermeasure.

(With inputs from agencies.)