The Dow Jones Industrial Average surged more than 1,000 points Tuesday, erasing losses incurred the day before as word spread from President Donald Trump's administration that the trade war with China is expected to ease. Tesla bolted higher on the stock market today with its earnings report coming after the close.
The Dow Jones index surged 2.7%, or 1,016 points, in the wake of Monday's 971-point drop. The S&P 500 climbed 2.5% Tuesday afternoon as the benchmark index neared the 5,300 level.
The Nasdaq joined the Dow with a 2.7% gain. The Russell 2000 kept pace with the major indexes, also posting a 2.7% jump.
Volume was higher on both the Nasdaq and New York Stock Exchange compared with the same time Monday. On the Nasdaq exchange, rising stocks topped falling issues by nearly 5-to-1. On the NYSE, gainers trounced losers 10-to-1.
The benchmark 10-year Treasury bond yield dipped to 4.4%. Oil prices jumped to $64.20 a barrel. Bitcoin surged to more than $91,200.
Much of the market's gains Tuesday came after Treasury Secretary Scott Bessent said at an event in Washington D.C., that he expects the trade tensions between the U.S. and China to de-esclate in the "very near future."
The markets took a beating Monday on trade warnings from China, as well as President Donald Trump's war of words with Federal Reserve Chairman Jerome Powell.
3:37 p.m. ET
Stock Market Today: Tesla Rises Ahead Of Earnings
Tesla stock climbed, recouping some of Monday's 5.7% drop. The company's first-quarter earnings release was expected after the market close.
Analysts expected first-quarter revenue of $21.34 billion with a 9% decline in earnings, to 41 cents a share. The stock has struggled, and lost 41% so far this year.
Biotech Name Back In Buy Zone
IBD 50 name ADMA Biologics sprinted more than 8% higher and back into a buy zone up to 21.74 of a cup-with-handle base with a 20.70 entry point. The biopharmaceutical stock has been volatile as reflected in its 21-day average true range, or ATR, of 7.4%. In the current, unpredictable market, IBD suggests stocks with ATRs of 3% or below.
As U.S. stocks struggled, some investors looked to foreign names for potential opportunities.
U.S.-based PriceSmart tacked on more than 2% and broke out of a double-bottom base with a 95.08 buy point. Shares are in a buy range up to 99.83. The stock has been rising since the membership warehouse club topped fiscal second-quarter earnings earlier this month.
PriceSmart operates 55 warehouse clubs in 12 countries throughout Latin America and the Caribbean and in one U.S. territory.
Latin American e-commerce powerhouse MercadoLibre rose more than 3% in lighter-than-average volume. Shares are climbing in a double-bottom base with a 2,202 buy point.
Futures: Tesla Earnings Dive, Musk In Focus; Bullish Market Move
2:05 p.m. ET
Recent IPO Stock Jumps
Quest Diagnostics powered up more than 6% after the blood lab-testing chain topped first-quarter profit and sales estimates. Quest stock punched above its 50-day moving average within an early-stage flat base with a 178.87 buy point. Its relative strength line reached a 52-week high.
CoreWeave hoisted nearly 9% after five straight days of losses for the cloud platform provider. At least 12 analysts initiated coverage on CoreWeave, a partner of Nvidia, with varying ratings and price targets.
The stock started trading on March 28 with an offer price of 40 per share. CoreWeave was around 38 in recent trades.
12:25 p.m. ET
Solar Name Shines, Netflix Tops Buy Point
Arizona-based First Solar jumped in heavy volume on Monday's news the U.S. imposed tariffs on solar cells from Cambodia, Thailand, Vietnam and Malaysia. The levies make it nearly prohibitive to sell in the U.S. as they stretch up to 3,521%. Shares tested their 50-day line but have lost around 23% so far this year. First Solar stock was a big gainer on the S&P 500 Tuesday.
Netflix surged in heavy trading and broke out of a double-bottom base with a 998.70 buy point. Netflix stock is extended from the 5% buy zone up to 1,048.64.
But the buy point is only used during strong market environments and IBD continues to recommend 0% to 20% stock market exposure. Investors should be cautious of breakouts and new buys during the current market correction and should follow risk management rules, including cutting losses at 7%.
Late Thursday, the streaming entertainment leader handily beat first-quarter earnings estimates and modestly topped sales.
"Both were ahead of our guidance due to slightly higher subscription and ad revenue and the timing of expenses," Netflix said in the company's earnings release.
Another streamer, Spotify Technology soared nearly 6%. Spotify stock is in a similar looking double-bottom base with a 621.20 buy point. The streaming music stock lifted above its 50-day line on the stock market today.
Both Netflix and Spotify's relative strength lines are at 52-week highs, as shown by the blue dots on their MarketSurge charts.
10:43 a.m. ET
Stock Market Today: Nvidia Climbs
Dow Jones component Nvidia rose more than 2% in the wake of Monday's 4.5% loss. Nvidia has been weak and has declined 26% year-to-date.
Another Dow Jones name, 3M, soared in heavy volume following the industrial products maker's higher-than-expected earnings and revenue for the first quarter. The stock retook its 200-day moving average. In a conventional market, investors might note the stock is forming a skewed consolidation pattern with an official 156.35 buy point. 3M was the Dow's biggest gainer on the stock market today.
The company's 2025 earnings outlook has been adjusted to now include "additional tariff sensitivity" of 20 cents to 40 cents a share. It projects $7.60 to $7.90 a share with a hit to the bottom line of around $110 million to $220 million.
Earnings Movers: Defense Stocks Show Mixed Results
GE Aerospace popped after the company topped first-quarter earnings with in-line sales. Management expects 2025 adjusted revenue to grow in the low double-digit percentage range with adjusted earnings per share of $5.10 to $5.45. Shares reclaimed their 200-day line but remain below the 50-day moving average.
Northrop Grumman plunged more than 12% in huge volume after the firm sorely missed profit and sales forecasts for its first quarter and cut its 2025 earnings estimates. The defense and aerospace stock undercut its 50-day line within a consolidation that has a 555.57 buy point.
RTX dropped sharply. The company beat views on first-quarter earnings and sales, but its 2025 outlook disappointed.
Outside of defense names, W.R. Berkley notched a sizable gain after the property and casualty insurer topped first-quarter earnings and sales estimates late Monday. Shares retook their 21-day exponential moving average.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
