Wall Street rebounds sharply on hopes of tariff | Australian Markets

Wall Street’s major indexes have bounced back from a heavy sell-off, led by technology stocks, on hopes of the US opening up for negotiations on its aggressive tariffs.

Most megacap and growth stocks gained, with Nvidia and Meta Platforms including 5.0 per cent every and Tesla rising 4.0 per cent.

The technology sector rose 3.5 per cent whereas indexes monitoring banks and semiconductor stocks had been up 4.0 per cent and three.6 per cent respectively.

The CBOE Volatility index – seen as Wall Street’s “fear gauge” – retreated to 38.59 factors after rising on Monday to its highest stage since August final yr.

The small-cap Russell 2000 index was trading 2.5 per cent increased after three periods of heavy losses.

“While today’s market bounce offers some relief, trade tensions remain the elephant in the room. With Trump threatening a further 50 per cent tariff on China and Beijing refusing to back down, sentiment could turn quickly,” stated Lukman Otunuga, senior market analyst at FXTM.

In early trading on Tuesday, the Dow Jones Industrial Average rose 1,190.19 factors, or 3.11 per cent, to 39,155.79, the S&P 500 gained 160.02 factors, or 3.16 per cent, to five,222.27 and the Nasdaq Composite gained 569.06 factors, or 3.65 per cent, to 16,172.32.

Since the reciprocal tariff announcement on April 2, issues over a international trade conflict and fears of a recession within the US have gripped Wall Street, with the three main indexes hitting round one-year lows.

The Nasdaq confirmed a bear market on Friday whereas the S&P 500 and the Dow are down more than 15 per cent from their record-high closes.

Uncertainty lingered after China stated it is going to by no means settle for the “blackmail nature” of the US to Trump’s menace to ratchet up tariffs on Chinese imports to more than 100 per cent.

US Treasury Secretary Scott Bessent stated in an interview to CNBC on Tuesday tariff negotiations are the consequence of calls from different nations, not sliding financial markets, and China’s escalation is a large mistake.

Meanwhile, Trump stated he mentioned tariffs, amongst others, in a “great” call with performing South Korean President Han Duck-soo.

Worries that the aggressive US tariffs might spur inflation and hamper international growth have led to better pricing of interest-rate cuts by the Federal Reserve.

Traders see more than 96 foundation factors of easing by the December, implying three absolutely priced in 25-bps cuts and a 84 per cent probability of a fourth such a discount, in keeping with LSEG knowledge.

A shopper price inflation studying can also be due on Thursday, which might offer more clues on the inflation trajectory.

Among particular person stocks, chipmaker Broadcom superior 7.4 per cent after the company stated it was launching a new share buyback program of up to $US10 billion ($A17 billion).

Health insurer UnitedHealth Group gained 7.6 per cent after the US introduced 5.06 per cent increase in fee charges to non-public insurers for 2026 Medicare Advantage health plans.

Humana soared 11.7 per cent whereas Elevance Health additionally gained 6.5 per cent.

CVS Health jumped 8.4 per cent.

The insurer named UPS govt Brian Newman as its chief financial officer.

Advancing points outnumbered decliners by a 13.36-to-1 ratio on the NYSE and by a 6.33-to-1 ratio on the Nasdaq.

The S&P 500 posted no new 52-week highs and no new lows whereas the Nasdaq Composite recorded 9 new highs and 24 new lows.