US Stocks Rally as White House Signals Progress on Trade Deals

US stocks rallied as the White House’s latest messages on tariffs led investors to be more hopeful about the US reaching deals with crucial trading partners.

The S&P 500 Index closed 2.5% higher in New York on Tuesday, while the Nasdaq 100 Index finished up 2.6%. The S&P 500 rebounded from the previous day’s slide, triggered by President Donald Trump’s call for Federal Reserve Chair Jerome Powell to lower interest rates. The last time the benchmark rallied at least 2% immediately after a similar drop was in November 2022. The Cboe VIX Index hovered around 31.

Treasury Secretary Scott Bessent told a closed-door ...