S&P 500 holds on to earlier gains on more measured US approach to tariff policy

As reported by the Economic Times, the S&P 500 is holding steady on Tuesday after a sharp surge a day earlier. The index rose as Nvidia and Tesla shares rallied following signs that US President Donald Trump's administration will take a more measured approach to tariff policy.

Earlier, the US leader announced his intention to impose automobile tariffs in the near future, with possible breaks for some countries. Optimism about scaled-back US duties sparked a rise in investor interest in tech stocks. As a result, AMD, Nvidia and Tesla surged, the Economic Times notes.

Nevertheless, several firms downgraded their forecasts regarding the further dynamics of the S&P 500, pointing to tariff uncertainty. Thus, according to LSEG, the earnings of companies in the index will grow by 10.5% in 2025, down by 3.5 percentage points since the beginning of the year.