Wall Street closed firmly in the green Tuesday, lifted by renewed hopes of a breakthrough in international trade talks and strong corporate earnings. The Dow Jones Industrial Average gained 300 points, or 0.75%, to close at 40,527—marking its sixth consecutive advance and longest winning streak since July. The S&P 500 rose 0.58% to 5,561, and the Nasdaq added 0.55% to end the day at 17,461.
Markets had been largely subdued until Commerce Secretary Howard Lutnick told CNBC that a trade deal was “done” and only awaiting parliamentary approval in an unnamed foreign country.
White House softens auto tariffs, offers targeted relief
Separately, President Trump signed an executive order to ease the burden of his 25% auto tariffs, responding to pressure from US automakers and parts suppliers. The new measures prevent “stacking” of multiple levies—such as those on steel or aluminium—on top of the core vehicle tariff. Companies will now pay only the highest applicable duty.
Additionally, automakers assembling vehicles in the US will receive rebates on parts tariffs equal to 3.75% of the vehicle’s value in year one, and 2.5% in year two. These rebates are designed to help firms shift their supply chains onshore without abandoning the administration’s broader trade agenda.
Meta unveils standalone AI app to rival ChatGPT
Meanwhile, Meta Platforms launched a standalone AI assistant app in a bold bid to challenge OpenAI’s ChatGPT and Google’s Gemini. Built on Meta’s Llama 4 model, the app offers highly personalised and context-aware responses by drawing on user data from Facebook and Instagram—provided users opt in.
A standout feature is the “Discover feed,” a social stream showcasing how others are using the AI. Users can remix prompts and share their own, merging generative AI with social media dynamics. Voice interaction is also front and centre, with a beta full-duplex mode offering overlapping, real-time conversations.
Corporate results steady markets ahead of Big Tech reports
General Motors remained under pressure after warning of uncertainty in its 2025 outlook and suspending share buybacks. Shares closed down 0.6%. Apple edged up 0.5%, while Amazon trimmed earlier losses to finish 0.2% lower after denying plans to add tariff surcharges to its discount site. Honeywell, meanwhile, surged 5.4% after beating quarterly earnings expectations.
Roughly one-third of S&P 500 companies are set to report this week. Meta and Microsoft are due Wednesday, followed by Amazon and Apple on Thursday.
Economic data sours, recession fears resurface
Several major banks, including Goldman Sachs and JPMorgan, downgraded their outlook for Q1 US GDP, now forecasting a contraction due to a record goods trade deficit. Goldman sees a decline of 0.8%, while JPMorgan expects a steeper 1.5% drop. Wolfe Research flagged the risk of stagflation, citing falling CEO confidence and stalled business investment.
Investor John Paulson added to the cautious tone, projecting that gold could rise to US$5,000 per ounce by 2028 due to geopolitical instability and central bank demand. Gold recently hit a record high of US$3,500.
Commodities and the dollar
WTI crude is trading 3.01% lower at US$60.18 a barrel.
Spot gold is trading 0.79% lower at US$3,317.72 an ounce.
One Australian dollar is buying 63.83 US cents.
ASX poised to open higher
Looking to Australia, the ASX is expected to open higher on Wednesday, following the upbeat US session. Futures point to a gain of 31 points.
Investor attention is squarely on the March quarter CPI report. Economists expect a 0.7% increase, bringing annual inflation back within the RBA’s 2–3% target band.
