U.S. stocks ticked higher Tuesday as markets continued their chaotic ride through the Trump administration’s latest tariff whiplash. With auto stocks buoyed by a potential reprieve and semiconductor and pharmaceutical import duties looming, investors attempted to parse what this latest chapter in trade policy might mean for corporate America.
As of midday, the S&P 500 was up 0.31%, the Nasdaq Composite gained 0.35%, and the Dow Jones Industrial Average added 0.16%. Markets were also digesting fresh earnings from major financial and healthcare names, even as volatility signals and technical indicators suggested a cautious undertone.
Market Movers:
- Hewlett Packard Enterprise (HPE) +5%: HPE surged after reports that Elliott Investment Management amassed a $1.5 billion stake in the company. The activist fund is reportedly pushing to boost shareholder value, with investors hopeful this will spur structural or strategic changes to help HPE capitalize on AI demand — something its competitors have done more successfully.
- Boeing (BA) -3%: Shares fell after China reportedly instructed its airlines to pause additional Boeing jet deliveries, exacerbating already strained U.S.-China trade relations. The news reignited concerns about Boeing's exposure to geopolitical risks and its ability to rebound amid ongoing delivery and safety woes.
- Bank of America (BAC) +1.7%: The bank posted a jump in first-quarter profits and trading activity, beating analyst expectations. Investors welcomed the strong performance, which signaled resilience in consumer spending and capital markets despite economic uncertainty.
- Johnson & Johnson (JNJ) +0.5%: J&J inched higher after topping Q1 expectations and lifting its full-year sales guidance. While the healthcare giant warned of a $400 million tariff-related profit hit, upbeat revenue growth across its pharma division reassured investors.
- Albertsons (ACI) -5%: The grocery chain dropped sharply after delivering a weak profit forecast for the year, citing tariff pressures and potential consumer pullback. Leadership turnover also added uncertainty, with COO Susan Morris slated to take over as CEO in May.
Trump’s Trade Maneuvering Sends Mixed Signals
President Trump’s evolving stance on tariffs continues to rattle markets and investors alike. Investors initially welcomed word of a potential reprieve for the auto industry, which sent shares in carmakers higher on Monday. But hopes for trade clarity were dimmed after Trump confirmed plans to proceed with new duties targeting semiconductors and pharmaceuticals.
EU officials left recent trade talks frustrated and without direction, suggesting that a long-term resolution is far from reach. Meanwhile, Trump’s “reciprocal tariff” policy — now temporarily reduced to 10% — is expected to snap back to 20% this summer, further clouding the outlook for transatlantic trade.
Technical Caution Creeps In
Despite Tuesday’s gains, analysts warn the recent rally may be on unsteady ground. The S&P 500 has formed a “death cross,” a bearish technical pattern where the 50-day moving average dips below the 200-day. Historically, this has preceded extended market downturns.
Still, investors have not abandoned risk. “Buy-the-dip” behavior remains robust, with retail flows hitting records following the April 3 tariff sell-off. This contradiction — optimism in the face of technical warning signs — underscores the confusion and fragility of the current market environment.
Looking Ahead
With earnings season in full swing and Trump’s tariff strategy shifting by the day, markets are likely to remain volatile. Investors will closely monitor corporate guidance to gauge how companies are navigating the uncertain trade environment. Inflation and import data also continue to feed speculation over economic resilience — or the lack thereof.
For now, Wall Street is clinging to cautious optimism. But as tariff threats become reality and global trade tensions simmer, that optimism may be tested.