Wall Street closed higher on Tuesday, driven by strong gains in Nvidia and other semiconductor companies, as investors grew hopeful about possible trade talks between the United States and its global partners regarding tariffs—a topic where greater clarity is eagerly anticipated by the markets.
The Dow Jones Industrial Average added 0.51%, or 214.16 points, closing at 42,519.64.
The broader S&P 500 rose by 34.43 points, or 0.58%, to end the session at 5,970.37.
The tech-heavy Nasdaq Composite advanced by 156.34 points, or 0.81%, finishing at 19,398.96.
The White House confirmed that a phone call between former President Donald Trump and Chinese President Xi Jinping is expected soon. The update follows Trump’s recent accusations that China violated the trade agreement reached in May in Geneva, which was intended to de-escalate tensions between the world’s two largest economies.
In response, China firmly denied the accusations and reiterated its commitment to defending its economic interests.
According to a document reviewed by Reuters, the U.S. has asked various countries to submit their best trade offers by Wednesday. This move appears to be an effort to fast-track bilateral negotiations before the expiration—five weeks from now—of the temporary truce declared by Trump concerning sweeping “reciprocal” tariffs.
“What matters most to investors is the assurance that the administration isn’t planning to impose more severe tariffs than expected or keep them in place indefinitely, which would almost certainly trigger a recession,” said Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management.
“The fact that the U.S. is actively engaging with major trade partners—including China, the UK, Japan, and the EU—boosts investor confidence,” he added.
In recent weeks, Wall Street’s key indexes have rebounded from their early-April lows, which were initially triggered by Trump’s announcement of widespread tariff plans affecting numerous countries.
A report from the U.S. Department of Labor released on Tuesday showed that job openings in April rose more than expected. However, layoffs also increased, indicating a potential slowdown in the labor market amid concerns over the economic impact of tariffs.
Investors are now awaiting Friday’s monthly employment data for a clearer picture of the job market.
Among the major sectors in the S&P 500, information technology led the gains. Nvidia climbed 2.9%, contributing significantly to the index’s performance. Meanwhile, Broadcom hit a record closing high after announcing that it has begun shipping its latest AI-focused chips.
Analyst Angelo Zino from CFRA Research noted that if the expected Trump-Xi conversation includes semiconductor issues, Nvidia could benefit. The AI chip giant currently faces significant limitations in accessing the Chinese market.
In other market movers, Dollar General surged 15.8% after the retailer released annual sales forecasts that beat expectations and reported solid quarterly earnings.
