The S&P 500 closed higher Tuesday as investors balanced strong earnings with rising US-China trade tensions. The Dow gained 142 points (0.3%), the S&P 500 climbed 0.72%, and the Nasdaq surged 262 points (1.4%).
President Trump postponed 25% tariffs on Canada and Mexico but imposed a 10% duty on Chinese goods, prompting Beijing to retaliate. China imposed tariffs on US coal, LNG, crude oil, and automobiles while restricting rare earth exports, escalating trade war concerns. Beijing also blacklisted PVH Corp (NYSE:PVH) and Illumina (NASDAQ:ILMN) and launched an antitrust probe into Alphabet (NASDAQ:GOOG).
Wall Street remains cautious about Fed rate cuts, with Morgan Stanley now predicting only one in 2025. Meanwhile, earnings reports drove market movements. PepsiCo (NASDAQ:PEP) dropped 4.5% on weak revenue growth, while Spotify (NYSE:SPOT) soared 13.3% on strong Q4 results. Palantir (NASDAQ:PLTR) surged 24% on AI-driven revenue forecasts. Estee Lauder (NYSE:EL) fell 16% due to weak Asian retail sales, and Merck (NYSE:MRK) slipped 9% after pausing Gardasil shipments to China.
All eyes are on Alphabet’s post-market earnings, with investors eager for AI spending updates amid competition from China's DeepSeek.
Oil prices dipped as trade tensions threatened economic growth. WTI crude fell 0.49% to $72.80 per barrel. Despite global concerns, OPEC+ upheld production plans, keeping output cuts in place until April.
Markets remain volatile as earnings and economic policies shape investor sentiment.


European Stocks Fall as Bond Yields and Geopolitical Risks Weigh
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears
Asian Currencies Mixed as Dollar Holds Near Two-Month High
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals
Asian Stocks Fall as Surging Bond Yields Rattle Markets
Trump, Xi Focus on Trade and AI at White House Summit
China Agrees to Buy 20 Million Tons of U.S. Coal
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High
Fed Unveils Stablecoin Rules Under GENIUS Act
Dollar Falls as Oil Eases, Yen Jumps on Intervention Signals
Dollar Holds Near Two-Month High as Yen Approaches 160
UK PM Burnham to Unveil Economic Vision at Labour Conference
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity
Oil Prices Fall on U.S.-Iran Hormuz Deal Hopes
Japanese Yen Rebounds as Trump Flags Currency Weakness
Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 



