Wall Street Gains on Trade Optimism Amid Trump-Xi Call Hopes and Tariff Hike

U.S. stock index futures remained largely unchanged on Tuesday evening as investors awaited a potential call between President Donald Trump and Chinese President Xi Jinping, which could revive stalled U.S.-China trade negotiations. The anticipation of renewed talks follows recent White House statements suggesting the two leaders may speak this week, although no date has been confirmed.

Markets are also reacting to Trump’s decision to double tariffs on steel and aluminum imports from 25% to 50%, effective Wednesday. The move raises concerns over higher production costs for U.S. manufacturers and adds fresh tension to global trade dynamics.

Despite these concerns, Wall Street ended Tuesday higher, supported by optimism around trade and strength in technology stocks. The S&P 500 futures hovered at 5,982.50 points, Nasdaq 100 futures were flat at 21,701.0, and Dow Jones futures remained steady near 42,603.0 points.

Chipmakers led gains, driven by hopes that improved U.S.-China relations could reopen the Chinese market to American tech firms. Nvidia (NASDAQ: NVDA) rose 2.8%, extending gains by 0.2% in after-hours trading. Broadcom (NASDAQ: AVGO) hit a record high after launching deliveries of a new Ethernet switch, further fueling bullish sentiment in the tech sector.

Meanwhile, Hewlett Packard Enterprise (NYSE: HPE) climbed 3% following stronger-than-expected earnings. Nvidia’s robust late-May earnings also reinforced investor confidence in AI-related demand.

Tuesday’s rally marks the Dow Jones Industrial Average’s fourth straight session of gains. The S&P 500 rose 0.6% to 5,970.38, the NASDAQ gained 0.8% to 19,398.96, and the Dow added 0.5% to close at 42,519.64.

While optimism around global trade persists, Trump’s broader tariff agenda continues to face legal scrutiny within the U.S., adding another layer of uncertainty to market sentiment.