Wall Street rallies and recovers all of Monday’s slide as the dollar and US bond market steady

NEW YORK AP U S stocks are rallying Tuesday after companies communicated fatter profits than expected and other U S investments are also steadying a day after falling sharply on worries about President Donald Trump s exchange war and his attacks on the head of the Federal Reserve The S P was higher in afternoon trading The Dow Jones Industrial Average was up points or as of p m Eastern time and the Nasdaq composite was higher Every major index has so far recovered from their sharp drop on Monday The value of the U S dollar also stabilized after sliding against the euro and other competitors while Treasury yields held steadier Sharp peculiar moves in those markets have in recent days raised worries that Trump s policies are making investors more skeptical that U S investments still deserve their reputations as the world s safest The only prediction a multitude of Wall Street strategists are willing to make is that financial markets will continue to jerk up and down as hopes rise and fall that Trump may negotiate deals with other countries to lower his tariffs Otherwise numerous investors expect the business sector to fall into a recession The International Monetary Fund on Tuesday slashed its forecast for global economic enhancement this year to down from But Vice President JD Vance also revealed he made progress with India s prime minister Narendra Modi on bargain talks Monday Particular signs of nervousness remain in financial markets Gold continued to rise for example as it holds onto its reputation as a safer capital when fear is dominating markets A suite of better-than-expected profit reports from big U S companies meanwhile drove U S stocks higher Equifax jumped after reporting better profit for the first three months of than analysts expected It also disclosed it would send more cash to its shareholders by increasing its dividend and buying up to billion of its stock over the next four years M climbed after the maker of Scotch tape and Command strips mentioned it made more in profit from each of revenue during the start of the year than it expected The company also stood by its forecast for profit for the full year though it stated tariffs may drag down its earnings per share by up to cents per share Homebuilder PulteGroup rose after it likewise delivered a stronger profit for the start of than analysts expected It s been benefiting from the sharp moves in the bond region The exceptional drops for Treasury yields lately are translating into lower rates for mortgages for probable customers The drops for stock prices that are happening at the same time though are likely also scaring likely buyers CEO Ryan Marshall stated buyers remain caught between a strong desire for homeownership and the affordability challenges of high selling prices and monthly payments that are stretched Tesla rose ahead of its earnings review which is scheduled to arrive after trading ends for the day That trimmed its loss for the year so far roughly Elon Musk s electric car company has already announced its first-quarter car sales dropped by from the year before It s been hurt by vandalism widespread protests and calls for a consumer boycott amid a backlash to Musk s high-profile role in the White House overseeing a cost-cutting purge of U S executive agencies Stocks also exhibited how Trump s tariffs could create winners and losers in a remade global business activity First Solar jumped after the U S Department of Commerce finalized harsher-than-expected solar tariffs on certain southeast Asian communities Defense contractors had certain of the sector s sharpest losses after RTX revealed U S tariffs on Mexican and Canadian imports along with other products could mean an million hit to its profit this year RTX which builds airplane engines and military equipment fell even though it stated a stronger profit for the latest quarter Kimberly-Clark lost even though the maker of Huggies and Kleenex likewise revealed a better-than-expected profit CEO Mike Hsu noted that the current context will now mean greater costs across our global supply chain versus what it expected at the start of the year and the company lowered its forecast for an underlying measure of profit this year In the bond industry the yield on the -year Treasury eased to from late Monday In stock markets abroad indexes were mixed in modest moves across Europe and Asia