On Tuesday, U.S. stock markets experienced an upward trend, thanks to better-than-anticipated corporate earnings, although there is widespread uncertainty concerning the potential impact of President Donald Trump’s trade policies.
The S&P 500 climbed 0.6%, marking the continuation of its upward streak to a sixth straight day. Meanwhile, the Dow Jones Industrial Average saw a rise of 300 points or 0.7%, and the Nasdaq composite increased by 0.5%.
Boosting the market was Honeywell International, which saw a 5.4% rise following the release of quarterly earnings and revenues that surpassed analysts’ predictions. Notably, the company also revised its full-year profit outlook upward, which buoyed investor sentiment. “Although we have yet to observe this in our results, we acknowledge the presence of an uncertain global demand landscape for the remainder of 2025. Our company will continue to diligently apply all available strategies to satisfy both our customers and shareholders,” stated CEO Vimal Kapur.
Joining Honeywell in market gains, Sherwin-Williams experienced a 4.8% rise after posting earnings that exceeded expectations. CEO Heidi Petz noted a continuing softness in some customer segments well into the latter half of the year but highlighted that the company’s local procurement of raw materials should help mitigate tariff effects.
Despite reporting stronger-than-expected earnings, some companies did not fare as well in the stock market. UPS, the world’s largest package delivery company, initially saw fluctuations in its stock price following its positive earnings report for the first quarter of 2025. However, the company refrained from updating its prior financial forecasts for 2025, citing “the current macro-economic uncertainty.” Furthermore, UPS announced plans to cut approximately 20,000 jobs and shut down 73 buildings in an effort to reduce costs—a move CEO Carol Tomé described as “timely.” Consequently, UPS shares ended the day down by 0.4%.
There is growing anxiety among investors that continuous tariffs introduced by Trump could trigger a recession by hindering global trade and elevating product prices. The inconsistent implementation of tariffs has been observed to create challenges for businesses and households in long-term strategic planning. Consumer confidence has notably waned over tariff concerns; the Conference Board reported a decline in income, business, and job market expectations, reaching their lowest since 2011, which could forewarn of a recession.
U.S. Treasury Secretary Scott Bessent suggested the current economic ambiguity is a negotiating tactic employed by Trump, labeling it as “strategic uncertainty.” At the White House, he noted these dynamics as part of the broader tariff and trade deal discussions.
The U.S. automotive industry might soon experience changes, as indicated by White House Press Secretary Karoline Leavitt’s announcement that Trump plans to sign an executive order relaxing a portion of his 25% auto tariffs.
Despite General Motors revealing better-than-expected quarterly profits, its stocks slid by 0.6%. The firm deferred its scheduled discussion on earnings and the 2025 outlook to Thursday due to recent developments in trade policy.
JetBlue Airways experienced fluctuations in its stock price before finishing the day 2.7% higher. This movement followed CEO Joanna Geraghty’s announcement of a suspension in the airline’s full-year financial forecast due to macroeconomic challenges, even as the company reported better-than-anticipated quarterly profits.
Coca-Cola shares overcame an initial dip, rising 0.8% after announcing robust first-quarter earnings. The company anticipated that the effects of tariffs on its operations would remain manageable and updated some of its financial guidance while maintaining its projections on key revenue growth measures.
At the end of the trading session, the S&P 500 increased by 32.08 points to reach 5,560.83; the Dow Jones Industrial Average rose by 300.03 points to 40,527.62, and the Nasdaq composite gained 95.18 points finishing at 17,461.32.
The bond market witnessed declining Treasury yields, with the 10-year Treasury yield decreasing to 4.17% from 4.23% at Monday’s close. The disappointing reports on consumer confidence and U.S. job openings at the end of March might apply pressure on the Federal Reserve to consider trimming interest rates as a counteraction to bolster economic growth.
Investors have shown concern as recent sharp increases in yields earlier in the month had unsettled both Wall Street and the U.S. government, calling the bond market’s stability into question. Meanwhile, stock exchanges overseas presented mixed results with mostly modest shifts across Europe and Asia.