Stocks Search for Direction After Monday's Broad Rally

U.S. stocks exhibited a bullish trend on Tuesday, following a significant rally the previous day, influenced by a mix of corporate earnings and a shift in tariff policies. The Dow Jones Industrial Average saw a rise of 200 points or 0.4%, with the S&P 500 and Nasdaq Composite both gaining approximately 0.6%. Notably, Bank of America beat analysts' expectations, reporting a potential economic shift as a concern. Citigroup also surpassed expectations, with statements from CEO Jane Fraser reassuring that the U.S. economy will maintain its dominance despite trade imbalances. Market fluctuations were also shaped by recent easing of tariffs on electronic goods by the White House, which aided in boosting investor confidence. President Donald Trump made headlines by expediting necessary permits for Nvidia's AI supercomputers, a move poised to strengthen the country's technological dominance. Meanwhile, tensions continue to simmer internationally; China has suspended Boeing aircraft deliveries in retaliation to high tariffs imposed by the U.S., signaling growing trade tensions amid efforts to secure domestic production. Furthermore, Trump's administration has intensified probes into semiconductor and pharmaceutical imports, suggesting possible tariffs in a bid that many are viewing skeptically. Small businesses have responded with lawsuits questioning the administration's authority to impose tariffs without congressional approval, highlighting the contentious debate around trade policy in the U.S. Overall, markets remain in a delicate balancing act amid corporate earnings news and geopolitical developments, with investors eager for signs of a clear direction forward.