Wall Street in green for third day as earnings lift sentiment, volatility cools

Despite the recent rebound, the broader indices remain in recovery mode. Since the initial tariff announcement on April 2, the S&P 500 has fallen more than 4 percent, while the Dow and Nasdaq have each shed over 3 percent

Wall Street edged higher on Tuesday, extending its winning streak to a third straight session as upbeat earnings reports and easing volatility brought some calm to markets still recovering from US-China trade jitters.

The Dow Jones Industrial Average rose by 106 points, or 0.2 percent, while the S&P 500 and Nasdaq Composite each gained 0.3 and 0.4 percent, respectively. The cautious optimism stood in sharp contrast to the wild swings seen recently, with the Cboe Volatility Index (VIX) dipping below 30, a significant pullback from last week’s peak near 60.

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Bank stocks helped buoy the broader market. Bank of America rallied 4 percent after its first-quarter earnings came in ahead of expectations, lifting the SPDR S&P Bank ETF (KBE) by nearly 2 percent. Investors are now turning their attention to upcoming results from heavyweights like United Airlines and Netflix, which are set to report later this week.

In the tech and industrial space, Boeing slipped more than 1 percent after a Bloomberg report said Chinese authorities instructed domestic carriers to halt further purchases of the aircraft maker’s planes — adding fresh uncertainty for the aviation giant.

Markets also continued to benefit from a policy reprieve announced late last week. On Friday, U.S. Customs and Border Protection said certain electronic goods, including smartphones, computers, and semiconductors, would be temporarily exempt from “reciprocal” tariffs. However, remarks from President Donald Trump and Commerce Secretary Howard Lutnick on Sunday hinted that these exemptions may not last, keeping traders on edge.

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Despite the recent rebound, the broader indices remain in recovery mode. Since the initial tariff announcement on April 2, the S&P 500 has fallen more than 4 percent, while the Dow and Nasdaq have each shed over 3 percent.

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