US stocks inch high, floating on car tariff relax relaxation hopes

US stocks trading in green on Tuesday, with the Dow Jones Industrial Average inching up by 292.3 points, or 0.73%, to 40,519.95. Following a similar suite, the Nasdaq Composite ssoared 53.93 points, or 0.31%, to 17,420.07, while the S&P 500 increased by 21.48 points, or 0.39%, to 5,550.23, at 12.13 am EDT.
Wall Street opened mixed but all three major indices were higher in midday trading.
Wall Street wavered as rising corporate profits were offset by ongoing uncertainty surrounding President Trump's trade war. UPS, the world’s largest package delivery firm, swaying between gains and losses after posting stronger-than-expected earnings for the first quarter of 2025. As a global shipper, UPS is often seen as a predicter for the health of the world economy.
Investor worries continue as fears grow that US President Trump's tariffs, if not changed, could push the economy toward a recession by slowing global trade and raising prices on many products. His unpredictable handling of tariffs has added to the uncertainty, making it hard for businesses and consumers to plan for the future.
The latest change may affect the US auto industry. On Tuesday, White House press secretary Karoline Leavitt said Trump will sign an executive order to ease some of his 25% auto tariffs to support domestic carmakers.
Despite posting better-than-expected earnings, General Motors shares fell 1.9%. The automaker postponed its investor call on 2025 guidance to Thursday, citing “recent reports regarding updates to trade policy.”
On a brighter note, Royal Caribbean gained 1.1% after delivering stronger quarterly earnings and raising its full-year outlook, helped in part by expectations of lower fuel costs. Oil prices have been volatile recently due to uncertainty over global energy demand amid the trade tensions. CEO Jason Liberty summed up the cautious sentiment across sectors, saying, “As we navigate the complexities of the current macroeconomic landscape, we remain focused on what we can control.”
Markets have found some relief from recent volatility, which had been fuelled by shifting expectations over President Donald Trump's stance on the trade war. On Monday, The Wall Street Journal reported that Trump was preparing to revise his proposed 25% tariffs on imported cars and auto parts, following widespread speculation on the matter.
The Wall Street Journal reported Monday that Trump was preparing, following widespread speculation over the issue, to adjust his 25% tariffs on imports of autos and auto parts.
World shares edged mostly higher on Tuesday, following a quiet and mixed finish for US markets at the start of a week packed with corporate earnings and economic updates. Germany’s DAX rose 0.7% to 22,421.79, while France’s CAC 40 held steady at 7,571.68. The UK’s FTSE 100 was also largely unchanged at 8,416.80. Futures for both the S&P 500 and Dow Jones Industrial Average were up 0.3%.
In Asia, Hong Kong's Hang Seng picked up 0.2% to 22,008.11, while the Shanghai Composite index edged 0.1% lower, to 3,286.55. In South Korea, the Kospi jumped 0.7% to 2,565.42. Australia's S&P/ASX 200 rose 0.9%, to 8,070.60.
Taiwan's Taiex gained 1%, while the Sensex in India gained 0.3%.