U.S. stocks observed minor gains as investors reacted to tariff developments, particularly regarding electronics and auto industries. Major indices traded largely flat despite a positive close on Monday. Notable earnings reports from companies like Johnson & Johnson and Bank of America moved markets, while Bitcoin demonstrated resilience amid ongoing tariff discussions.
On Tuesday, U.S. stocks showed little change after a positive close on Monday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq indices largely flat during early trading. Notably, all major indices had recorded gains yesterday, supported by favourable factors affecting electronics and automotive stocks due to anticipated tariff exemptions.
Electronics manufacturers experienced a boost following recent exclusions of computers and smartphones from tariffs. Additionally, auto stocks surged on news of possible tariff exemptions, contributing to the overall market activity. However, investor sentiment remained cautious, largely due to the ongoing uncertainties surrounding the U.S.-China trade war and its implications for tariffs.
The yields on Treasuries reflected a mixed sentiment, with the 10-year Treasury yield dropping by 6 basis points to 4.358%, while the 2-year yield decreased by 4 basis points to 3.828%. These movements indicate a degree of apprehension as markets adjust to expectations surrounding tariff developments.
On the corporate front, notable earnings results influenced the market. Stocks of Johnson & Johnson (JNJ), Bank of America (BAC), and Citigroup (C) showed early gains, with BAC up by 4% and C by 3%. In contrast, JNJ experienced a slight decline of 0.54%.
In the cryptocurrency domain, Bitcoin (BTC) witnessed a marginal increase, showing resilience as it approached the $85,000 mark. The cryptocurrency gained approximately 7% over the past week, indicating a recovery phase following market pressures in early April. Optimism regarding tariff-related equities contrasted with the volatility experienced by major stock indices, which were influenced by President Donald Trump’s recent tariff announcements on critical sectors.
