Stocks edged higher on Tuesday as investors digested President Trump’s new 10% global tariffs, which went live at midnight under Trade Act authority after the Supreme Court blocked his earlier reciprocal levies. Futures had ticked up overnight, and the momentum carried into the cash session as traders looked past immediate trade friction and focused on corporate deal flow and AI developments.
The Dow Jones Industrial Average gained solid ground, while the S&P 500 and Nasdaq also climbed, helped by strength in semiconductors and select biotech names. The rebound followed Monday’s sharp AI-driven sell-off, with investors showing signs of bargain hunting even as trade policy uncertainty lingers.
Market Movers:
- Vir Biotechnology (VIR) +30% – Shares surged after the company announced a sweeping partnership with Astellas Pharma to develop and commercialize its CD3 T-cell engager for prostate cancer. The deal includes hundreds of millions in upfront payments and more than $1 billion in potential milestones, while encouraging early clinical data and a narrower quarterly loss further boosted investor confidence.
- Clarivate (CLVT) +30% – The stock soared after upbeat fourth-quarter results and news that the company is exploring a potential sale of its Life Sciences & Healthcare unit. Management said a divestiture could sharpen strategic focus and reduce leverage, though it cautioned that no transaction is guaranteed.
- Keysight Technologies (KEYS) +21% – Shares jumped after first-quarter results and guidance topped expectations, fueled by strong demand across AI, aerospace, defense, and semiconductor testing markets. Analysts highlighted accelerating organic orders and a growing backlog as evidence of sustained secular tailwinds tied to AI infrastructure investment.
- Advanced Micro Devices (AMD) +7% – The chipmaker climbed after unveiling a multiyear AI infrastructure partnership with Meta Platforms that could see deployment of up to 6 gigawatts of Instinct GPUs. The agreement includes a performance-based warrant structure tied to shipment milestones, signaling a deep strategic relationship and reinforcing AMD’s competitive positioning in AI hardware.
- Innovative Industrial Properties (IIPR) +4% – The cannabis-focused REIT rose after reporting better-than-expected quarterly earnings and revenue. Management pointed to balance-sheet improvements, leasing momentum, and disciplined capital allocation as signs of stabilizing portfolio performance.
- Hims & Hers Health (HIMS) -8% – Shares fell despite a revenue beat after the company issued softer-than-expected near-term guidance. Investor sentiment was further pressured by the disclosure of an SEC enforcement letter related to compounded semaglutide disclosures.
- CECO Environmental (CECO) -16% – The stock plunged after announcing a $2.2 billion acquisition of Thermon Group in a stock-and-cash deal. While management touted long-term cost synergies, investors reacted cautiously to integration risks and the transaction’s size.
- Whirlpool (WHR) -8% – Shares dipped after the company unveiled concurrent equity and mandatory convertible preferred offerings expected to raise roughly $800 million. The structure raised dilution concerns even as management said proceeds would strengthen the balance sheet and fund automation investments.
Tariff Tensions Return to Center Stage
Trump’s new 10% global tariff has reintroduced uncertainty into global trade discussions. The move follows the Supreme Court’s rejection of his earlier tariff framework and has already drawn criticism from key trading partners, raising the possibility of retaliatory measures. Investors are weighing whether the administration escalates further. Reports suggest officials are considering lifting the rate to 15% and launching additional national security probes that could pave the way for sector-specific levies.
AI Fears and Labor Market Implications
Beyond trade, AI remains a key theme driving cross-sector volatility. A recent Goldman Sachs note warned that AI-driven job displacement could nudge the unemployment rate higher later this year, even as productivity improves. Federal Reserve officials have also suggested that AI-fueled productivity gains could complicate traditional monetary policy responses. Markets are now pricing in a high probability that the Fed will hold rates steady at its next meeting, as policymakers assess how structural AI shifts interact with inflation and employment trends.
Looking Ahead
Investors now turn their attention to President Trump’s upcoming address and any clarity it may provide on trade strategy. At the same time, AI-related corporate updates and economic data will continue shaping expectations for growth and Federal Reserve policy. With tariffs active and structural tech shifts underway, markets appear poised for continued swings as Wall Street balances policy risk against earnings resilience.