FX.co ★ Wall Street Rallies on Tariff Talk Hopes

On Tuesday, major U.S. stock indices experienced a strong rally, gaining over 3% and breaking a three-day trend of losses characterized by increased volatility. This positive shift in investor sentiment was sparked by optimism surrounding potential progress in U.S. tariff negotiations. The S&P 500 climbed by 3.1%, the Dow Jones Industrial Average jumped 1,300 points, marking a 3.5% increase, and the Nasdaq Composite Index rose by 3.2%. This upward movement was buoyed by comments from Treasury Secretary Scott Bessent, who revealed that approximately 70 countries, including Japan, have approached the White House to initiate discussions on tariffs. Notwithstanding this market enthusiasm, tensions between the U.S. and China persisted, as Beijing reinforced its commitment to "fight to the end" following President Trump's threat to levy 50% tariffs if China did not promptly retract its countermeasures. Trump mentioned awaiting a call from Chinese officials to commence trade talks. In specific stock news, shares of UnitedHealth Group jumped by 7.7% after the U.S. government announced reimbursement rates for Medicare Advantage health plans that exceeded expectations.