Stock market today: Dow gains 1,000 points, S&P 500 and Nasdaq gain over 2.5% on signs of tariff progress

US stocks soared on Tuesday following a bruising day on Wall Street, as investors built hope for deescalation on several fronts of President Trump’s trade battles. The Dow Jones Industrial Average (^DJI) added over 1,000 points, while the benchmark S&P 500 (^GSPC) and tech-heavy Nasdaq (^IXIC) each rose around 2.5% and 2.7%, respectively. Stocks largely rallied after US Treasury Secretary Scott Bessent said in a private speech that talks between the United States and China would likely lead to a deescalation, though he added that negotiations will likely be a “slog.” The abrupt reversal in markets came a day after stocks tanked as Trump took to social media to amp up his attacks on Fed Chair Jerome Powell, escalating growing tensions between the president and the central bank. For investors trying to keep up with Trump’s fast-moving trade policy, the rift added another layer of stubborn uncertainty as to where the economy could go next. But another sign of trade progress Tuesday came in US talks with India, as Vice President JD Vance hailed progress as he met with Prime Minister Narendra Modi. After the bell, investors shifted their attention to Tesla (TSLA) earnings. The company reported a miss on both the top and bottom lines as the EV maker contends with signs of slumping sales and waning demand as CEO Elon Musk’s role in the White House rattles its brand. On the tariff front, the company said it is difficult to measure the impact of global trade policy and that the tariff landscape will have a larger impact on its energy business. Notably, the company excluded its return to growth forecast from its earnings report. Shares ticked slightly lower in immediate after-hours trading.