US stocks rally as Trump tempers auto tariffs

Wall Street stocks rose on Tuesday as markets digested mixed earnings while applauding a move by President Donald Trump to ease tariffs on automakers.

Trump’s pivot includes limitations on the impact of multiple tariffs on carmakers and a measure to allow carmakers to offset a portion of the levy for two years.

Investors are “encouraged by the Trump decision to be a little more flexible (…) with the autos,” said Sam Stovall of CFRA Research.

The Dow Jones finished 0.8 percent higher at 40,527.

The S&P 500 advanced 0.6 percent to 5,560, while the Nasdaq rose 0.6 percent to 17,461.

Stocks moved sideways on Monday after notching four straight positive sessions last week as Trump adopted a more conciliatory posture on the trade war with China and said he doesn’t plan to fire Federal Reserve Chair Jerome Powell.

Stovall predicted stocks could go higher.

“There’s definitely uncertainty, but I believe that the risk is to the upside, meaning that the market has already priced in the impact of the tariffs,” he said.

Among automakers General Motors fell 0.6 percent, Ford rose 1.3 percent and Stellantis gained 2.5 percent.

Among companies reporting earnings, Honeywell International jumped 5.4 percent, Coca-Cola advanced 0.8 percent and Pfizer won 3.2 percent while UPS shed 0.4 percent. (AFP)