Dow soars 1,400 pts, Nasdaq, S&P up 4% on tariff deal hopes

Wall Street's main indexes opened sharply higher on Tuesday after a bruising selloff that has wiped out trillions of dollars since last week, as investors await any sign of the U.S. opening up for negotiations over some of the aggressive tariffs.

At 10.16 am, the Dow Jones surged 1,415.44 points or 3.73% to 39,381.04, the S&P 500 climbed 196.25 points or 3.88% to 5,258.50, and the Nasdaq jumped 675.71 points or 4.33% to 16,278.97.

The bounce was global. Stock indexes rose 6% in Tokyo, 3.4% in Paris and 1.6% in Shanghai. The price of crude oil also pulled a bit higher after touching its lowest level since 2021 on Monday. Bitcoin steadied and was back above $79,000 after dropping toward $76,000 the prior day.

No big change is behind the move back upward, and analysts say more swings up and down are likely for markets in not only the days but also the hours ahead.

The big question remains centered on how long Trump will keep his stiff tariffs on other countries, which would raise prices for U.S. shoppers and slow the economy. If they last a long time, economists and investors expect it to cause a recession. But if Trump lowers them through negotiations relatively quickly, the worst-case scenario can be avoided.

Hope still remains on Wall Street that negotiations may be possible, and Japanese stocks led global markets after the country’s prime minister, Shigeru Ishiba, appointed his trade negotiator for talks with the United States. It was based on an agreement between Ishiba and Trump, Japanese officials said.