On Tuesday afternoon, the S&P 500 slipped into negative territory, wiping out all earlier gains as the deadline for President Donald Trump’s tariffs loomed large. The index fell 0.04%, while the Nasdaq Composite declined by 0.3%. In contrast, the Dow Jones Industrial Average rose by 142 points, or 0.7%. Earlier in the day, the major averages enjoyed a robust relief rally, with the Dow soaring as much as 3.8% and both the S&P 500 and Nasdaq rallying over 4%. This surge was primarily driven by rising optimism that the U.S. could potentially strike an agreement to lower tariffs with its major trading partners. In a notable post on Truth Social, Trump shared details of a “great call” with South Korea’s acting president, expressing that China is also keen to negotiate a deal. This sentiment underlines the urgency for progress in trade discussions, reinforcing the market’s anticipation for positive developments.
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