Tech Stocks Lead Wall Street Rebound Amid Tariff Relief Hopes

Wall Street indices rebounded as technology stocks surged, propelled by optimism regarding potential U.S.-China tariff negotiations. Nvidia, Meta, and Tesla led gains, while the Nasdaq and Dow Jones indices climbed. Despite this, trade tensions linger, with looming tariff threats and inflation concerns influencing market sentiment and Federal Reserve rate cut forecasts.

On Tuesday, Wall Street witnessed a recovery from a significant selloff, propelling by a surge in technology stocks amidst growing optimism over U.S.-China tariff negotiations. Prominent gains from Nvidia, Meta Platforms, and Tesla contributed to the tech sector rise of 3.5%, aiding the overall market's upward momentum.

The Nasdaq Composite, Dow Jones Industrial Average, and S&P 500 all reported gains, soaring by 3.65%, 3.11%, and 3.16%, respectively. Despite the positive market turn, senior market analyst Lukman Otunuga warns that unresolved trade tensions might swiftly reverse the sentiment, with looming tariff threats continuing to loom large.

Additionally, factors such as inflation worries prompted trading considerations for Federal Reserve interest-rate cuts, further complicating the financial landscape. Meanwhile, individual stock performances, including Broadcom's 7.4% jump due to a buyback program, and UnitedHealth's 7.6% gain following a Medicare Advantage health plan rate increase, indicate sectorial resilience even as global uncertainties persist.

(With inputs from agencies.)