Stocks Edge Higher as Investors Assess Tariff Scenarios

Stocks inched higher in early trading on Tuesday, as the Trump administration’s chaotic tariff rollout continues to spur volatility in the markets.

The S&P 500 rose 0.4 percent in morning trading, and the technology-heavy Nasdaq also posted modest gains. President Trump’s whipsawing tariff policies are still driving sentiment on Wall Street, especially in sectors facing the threat of more levies or potential reprieves.

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Bank stocks rose on Tuesday, as major U.S. lenders reported their latest earnings. Bank of America surpassed Wall Street’s profit and revenue expectations, and its shares rose nearly 4 percent Tuesday morning. Citigroup’s profits also beat estimates, sending its stock more than 2 percent higher.
Tariff threats are taking center stage in the pharmaceutical and technology sectors, after the Trump administration on Monday took steps that appeared likely to result in new tariffs on pharma products and semiconductors. Shares in drugmakers Eli Lilly and Novartis were higher on Tuesday morning. Shares in chip giant Nvidia were up nearly 1 percent by late morning, after the company on Monday said it would invest in artificial intelligence infrastructure in the United States.
Shares in Boeing, the aviation giant, fell about 2 percent on Tuesday morning following a report from Bloomberg News that China had instructed its airlines to halt deliveries of Boeing planes after the Trump administration imposed steep tariffs on Chinese goods.
In the auto industry, shares in General Motors, Ford Motor and Stellantis — which jumped on Monday after Mr. Trump signaled that he might offer car companies some relief from tariffs — were mixed on Tuesday morning. Shares in General Motors and Ford both fell more than 1 percent, while Stellantis dipped a more modest 0.3 percent by late morning. The sector, which is grappling with a 25 percent tariff on imported vehicles, is bracing for new levies on imported car parts.
The U.S. dollar, long a haven in global financial markets, has been falling against other major currencies. But an index that tracks the currency against a basket of major trading partners stabilized early Tuesday, ending a five-day slide.
The U.S. junk-bond market on Tuesday saw its first offering in almost two weeks, a sign of stabilization and renewed assurance following bouts of volatility. A developer of a liquefied natural gas facility is offering eight-year and 10-year bonds, according to Bloomberg News.