Wall Street Soars As Trump Teases Trade Deals, Magnificent 7 Add Over $500 Billion In Market Value

U.S. stocks surged in early trading Tuesday after President Donald Trump hinted at progress on some trade deals with key trading partners, easing fears of global trade disruption stemming from recent tariff announcements.

The S&P 500 index, as tracked by the SPDR S&P 500 ETF Trust SPY, surged 3% by 9:45 a.m. in New York, clawing back some of the 10% it had lost over the previous four sessions.

Other major indices also showed robust gains, with the tech-heavy Nasdaq 100 – tracked by the Invesco QQQ Trust, Series 1 QQQ – outperforming counterparts amid broad-based rallies in mega-cap and semiconductor stocks.

After suffering steep losses in recent sessions, investors poured back into financials, tech, and consumer discretionary, which were the top-performing sectors on Tuesday.

Semiconductors were the standout industry group, with the iShares Semiconductor ETF SOXX rallying 4.5%.

Trump Sparks Optimism With Trade Talk Blitz

The catalyst behind the rally was a lengthy post on Truth Social by Trump, in which he described a “great call” with South Korea’s acting president.

The president said South Korea is sending a “top team” to the U.S. for negotiations, calling the process “one-stop shopping” for trade and military agreements.

In a CNN interview, South Korea’s acting president confirmed the country would not align with China and Japan to counter U.S. tariffs.

Seoul faces 25% tariffs under Trump’s global tariff rollout. Instead, it aims to strike a bilateral agreement with the U.S. to avoid a blow to its export-driven economy.

Trump also hinted at more openness in trade negotiations with China after threatening Monday to impose a 50% tariff on top of the 54% already levied.

“China also wants to make a deal, badly, but they don’t know how to get it started,” Trump wrote.

“We are waiting for their [China’s] call. It will happen!” he added, suggesting renewed momentum on U.S.-China trade talks.

Senior White House economic adviser Kevin Hassett echoed the optimism, telling Fox News that the Trump administration is focusing on countries with “large trade deficits” with the U.S. He emphasized that “fair and reciprocal trade” remains the administration’s goal.

Mega-cap stocks (S&P 100): Top 7 performers

Among S&P 100 companies, CVS Health Corp. CVS led gains with a 9.26% surge, followed by Broadcom Inc. AVGO and UnitedHealth Group Inc. UNH.

The biggest market-moving headline of the session was the explosive increase in market capitalization among the Magnificent Seven — Apple Inc. AAPL, Microsoft Corp. MSFT, Amazon.com Inc. AMZN, Alphabet Inc. GOOGL, Meta Platforms Inc., Tesla Inc., and NVIDIA Corp. — which collectively added over $564 billion in market value.

Nasdaq 100: Standout Performers

AppLovin Corp. APP was the top gainer in the Nasdaq 100, soaring 10.62%, while Marvell Technology Inc. MRVL and Broadcom Inc. AVGO followed with strong moves.

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