ECB Eyes Rate Hike Amid Iran Conflict-Driven Energy Price Surge 
WTO Reform Talks Begin in Cameroon Amid Global Trade Tensions 
Bank of Japan Unveils New Inflation Gauge to Support Case for Future Rate Hikes 
Oil Prices Climb as Iran Reviews U.S. Peace Proposal Amid Middle East Tensions 
Suspicious Oil Market Trades Precede Trump's Iran Peace Post by 15 Minutes 
Bank of Japan Officials Signal Continued Interest Rate Hikes Amid Inflation Concerns 
Gold Prices Surge on U.S.-Iran Ceasefire Reports 
Australia's Inflation Eases in February but Core Pressures Persist 
U.S. Futures Slide as Iran Denies Nuclear Talks with Washington 
Australia-EU Free Trade Deal Signed After Years of Negotiations 
Asian Currencies Stay Muted as Dollar Holds Firm Amid Iran Uncertainty 
Gold Prices Climb as Middle East Ceasefire Talks Stir Market Optimism 
Asian Currencies Weaken as Dollar Rebounds Amid Middle East Uncertainty and Japan Inflation Data 
Iran-Israel Missile Strikes Continue Amid Mixed Signals on U.S.-Iran Diplomacy 
U.S. Stock Futures Steady as Iran Reviews U.S. Ceasefire Proposal 
The S&P 500 closed higher Tuesday, driven by a surge in Tesla (NASDAQ:TSLA) shares and renewed optimism over U.S.-China trade talks. Investors are betting that positive outcomes from negotiations will ease tensions and potentially roll back sweeping tariffs imposed earlier this year.
Tesla jumped 5.6%, leading gains among major tech stocks, while Alphabet (NASDAQ:GOOGL) rose 1.4% after reports that OpenAI plans to use Google Cloud to expand its computing capacity. Meanwhile, Microsoft (NASDAQ:MSFT) dipped 0.4%.
Commerce Secretary Howard Lutnick said talks with China were progressing and could wrap up by Wednesday. Hopes that “Liberation Day” tariff levels will be avoided have helped the S&P 500 rebound from its April slump, now trading just below February’s record highs. Horizon Investments’ CIO Scott Ladner noted, “You can’t get to these market valuations with those tariffs becoming reality.”
The S&P 500 rose 0.55% to 6,038.81, the Nasdaq climbed 0.63% to 19,714.99, and the Dow Jones gained 0.25% to 42,866.87. Ten of 11 S&P 500 sectors advanced, led by energy (+1.77%) and consumer discretionary (+1.19%). Trading volume reached 18.5 billion shares, above the recent average.
Investors now await Wednesday’s U.S. consumer price index for clues on the Federal Reserve’s next interest rate move. Meanwhile, the World Bank cut its 2025 global growth forecast to 2.3%, citing trade tensions and uncertainty.
In corporate news, Insmed (NASDAQ:INSM) soared nearly 29% on positive clinical trial results. J.M. Smucker tumbled 15.6% after issuing weak earnings guidance. Snap (NYSE:SNAP) slipped 0.1% after unveiling plans for consumer smart glasses to rival Meta (NASDAQ:META).
Overall, advancing stocks outpaced decliners 2-to-1 on the S&P 500, with the index posting 12 new highs and two new lows.
