U.S. stocks edged higher on Tuesday, with the S&P 500 and Nasdaq gaining 0.1% to reach fresh two-week highs, while the Dow added 70 points.
US stocks extend gains to fresh two-week highs
Market sentiment was bolstered by growing hopes that the Trump administration might soften its proposed tariff plans. President Trump announced that not all threatened tariffs would take effect on April 2nd, hinting that some countries might receive exemptions. However, uncertainty remained as he signaled new levies on key industries, including autos, pharmaceuticals, and a 25% tariff on crude oil imports from Venezuela. Investors viewed the selective approach as a potential compromise, easing fears of widespread economic disruption.
Fed signals progress on inflation
Meanwhile, on the monetary policy front, Fed Governor Adriana Kugler reiterated that monetary policy remains restrictive but cautioned that progress toward the 2% inflation target has slowed since last summer. She cited the recent uptick in goods inflation as “unhelpful,” reinforcing expectations that the Federal Reserve may remain cautious in cutting rates. Other Fed officials have echoed a similar stance, emphasizing the need to assess incoming data before making policy adjustments.
Tesla shares slip
In corporate news, Tesla shares slipped 1% after reports indicated a decline in the company’s European market share, raising concerns about intensifying competition from local automakers. Workwear provider UniFirst plummeted over 12% after Cintas ended talks to acquire the company in a deal valued at $275 per share, disappointing investors who had anticipated a merger. Homebuilder KB Home also saw its stock drop 6% after the company lowered its full-year 2025 revenue forecast, citing persistent affordability challenges and softer-than-expected demand in key markets.
Despite these corporate setbacks, overall market momentum remained positive, with traders closely monitoring developments in trade policy, inflation data, and upcoming economic reports for further direction.
