Stocks bounce back after Trump tariff plunge

The stock market opened Tuesday with solid gains for the first time since President Trump announced plans to impose $600 billion in taxes on foreign goods.

The Dow Jones Industrial Average rose more than 1,300 points after the Tuesday opening bell, rising 3.4 percent. The S&P 500 was up 3.2 percent, and the Nasdaq was up 3.6 percent.

While all three major indexes are still well below record highs reached after Trump’s reelection, the strong Tuesday open was a sign of some relief on Wall Street after weeks of steady losses.

The slight rebound came after Trump and Treasury Secretary Scott Bessent suggested the administration could reach agreements with Japan, South Korea and Vietnam regarding trade and other issues.

Trump and his economic team have offered mixed messages about whether the president would be willing to walk back some of his new tariffs, which are set to take effect at 12:01 a.m. EDT Wednesday.

“They can both be true. There can be permanent tariffs and there can also be negotiations,” Trump said Monday.

Bessent said Monday evening that the president would be willing to negotiate “at a point.”

“I suggested that the foreign officials keep your cool, do not escalate, and come to us with your offers and how you’re going to drop tariffs, how you’re going to drop nontariff barriers, how going to stop your currency manipulation, how you’re going to stop the subsidized financing,” Bessent told Fox Business Network’s Larry Kudlow.

“And at a point, President Trump will be ready to negotiate.”

Updated at 10:55 am EDT