US stocks opened higher on Tuesday morning as markets showed signs of stabilizing after recent volatility driven by trade tensions. The S&P 500 rose 0.5% in early trading, though market activity remained choppy, reflecting ongoing uncertainty around US President Donald Trump’s trade war — a conflict that economists warn could trigger a global recession if not de-escalated.
The Dow Jones Industrial Average gained 149 points, or 0.4%, as of 10:45 a.m. Eastern Time, while the tech-heavy Nasdaq composite added 0.5%.
More tellingly, the US bond market also showed signs of calming down. The yield on the 10-year Treasury slipped to 4.34% from 4.38% the previous day, after a sharp retreat from last week’s high of 4.48%. Just a week ago, the yield stood at 4.01%. Typically, bond yields fall — not rise — during periods of fear as investors seek safe-haven assets.
The US dollar also steadied after last week’s slide raised concerns that the trade war might be undermining its traditional status as a global safe haven. On Tuesday, the dollar ticked up against the euro and Swiss franc but edged lower against the British pound.
On Wall Street, bank stocks led gains. Bank of America surged 3.5% after reporting quarterly earnings that beat analysts’ estimates. Citigroup also exceeded expectations, sending its shares up 2.3%. Analysts said the strong performance from major banks was driven in part by trading desks capitalizing on market volatility caused by shifting US trade policy, as per AP reports.
Palantir Technologies rose 3.7%, extending its rally after Nato announced plans to use the company’s artificial intelligence tools in its allied command operations.
However, not all sectors fared well. Albertsons fell 7% despite posting better-than-expected profits for the quarter. The parent company of Safeway and Vons issued a forecast for the upcoming year that fell short of analysts’ expectations.
DaVita, a health care provider, declined 1.8% following a ransomware attack that has disrupted some of its operations. The company said it is still assessing the full scope and impact of the incident, which it discovered on Saturday.
Boeing shares also weighed on the market, dropping 2% after a Bloomberg report said that China had ordered its airlines to suspend further deliveries of Boeing aircraft and to halt purchases of aircraft equipment from US companies.
Earlier, Wall Street veered toward modest losses in early Tuesday trading, showing limited reaction to President Donald Trump’s latest softening of tariffs, while relief from recent bond market stress helped maintain a relatively calm tone. Futures for the S&P 500 and Nasdaq each dipped 0.3%, while Dow Jones Industrial Average futures were down 0.4%.
Despite the easing on some trade measures, the Trump administration simultaneously signalled potential new tariffs, launching an investigation into the national security risks of importing pharmaceuticals, semiconductors, and related tech products.
“You know the drill: one step forward, two steps back, then a whiplash pivot into carrot-and-stick diplomacy. It’s becoming the signature of this White House — deliver a policy gut punch, then soften the blow with selective reprieves or 90-day pauses. It’s market management by whack-a-mole,” commented Stephen Innes, managing partner at SPI Asset Management.
Bank of America shares rose 1.8% in premarket trading after beating Wall Street’s sales and revenue expectations. Major US banks have generally reported strong first-quarter earnings, thanks in part to active trading desks capitalizing on volatility from the administration’s fluctuating tariff strategy.
Johnson & Johnson also posted solid quarterly results, but its shares were down 1% before Tuesday’s opening bell.
Boeing shares tumbled 3.3% following a Bloomberg report that Chinese regulators have instructed airlines to stop taking deliveries of Boeing aircraft and to suspend procurement of aviation equipment from US firms.
United Airlines is expected to report earnings after market close.
Meanwhile, Treasury yields steadied after a volatile surge last week. The yield on the 10-year Treasury note held at 4.37%, unchanged from Monday, after spiking to 4.48% on Friday from 4.01% the previous week.
In European midday trading, Germany’s DAX climbed 0.8%, and the UK’s FTSE 100 rose 0.7%. France’s CAC 40 remained flat after early gains.
In Asia, Japan’s Nikkei 225 advanced 0.8%, closing at 34,267.54. Automakers led the rally, with Toyota Motor Corp. gaining 3.7% and Honda Motor Co. rising 3.6%. Sony Corp. also added 2.2%.
Australia’s S&P/ASX 200 edged up 0.2% to 7,761.70, and South Korea’s Kospi rose 0.9% to 2,477.41.
In China, markets showed mixed signals. Hong Kong’s Hang Seng inched up 0.2% to 21,466.27, while the Shanghai Composite also gained 0.2%, ending at 3,267.66.
In energy markets, US benchmark crude slipped 48 cents to $61.05 per barrel, while Brent crude fell by the same margin to $64.40. The International Energy Agency lowered its global oil demand forecast for the year amid deepening trade tensions. US crude prices have dropped around 14% in April.
Currency markets also saw movement, with the US dollar slipping to 142.87 Japanese yen from 143.04 yen, and the euro falling slightly to $1.1330.
