Easing trade tensions boosted optimism on Wall Street Tuesday, just days after the S&P 500 finished its worst week since the original Trump tariff announcements in early April.

Market Snapshot

The Dow Jones Industrial Average added 741 points, while the S&P rose 2.1%, its biggest jump since May 12, when news of a rollback on tariffs between the U.S. and China sent the index 3.3% higher. NVIDIA up 3.2%; Advanced Micro Devices up 3.9%; Marvell Technology up 5.2%; AMC soared 24%.

Market Movers

Apple was up 2.5%. The stock fell 3% on Friday after Trump threatened a 25% tariff on iPhones sold in the U.S. unless the devices are made domestically. The president added later in the day that he also would place levies on Samsung and other smartphone manufacturers that import to the country to ensure fairness. Trump added the tariffs potentially would start at the end of June.

Tesla Motors shares rallied 6.9% even as the electric-vehicle maker's sales in Europe declined for a fourth straight month. Giving the stock a boost were comments from CEO Elon Musk, who said over the weekend that he had returned to Tesla -- and his other companies -- full time. The stock fell 3% last week, which ended a four-week winning streak. The Trump administration's tax-and-spending bill that was passed by the House of Representatives last week included measures that would require owners of electric and hybrid vehicles to pay annual fees, while the Republican-led Senate voted to revoke a California measure that banned the sale of new gasoline-powered cars by 2035.

Salesforce.com confirmed it would acquire data-management software company Informatica for $25 a share, or $8 billion in equity value. Salesforce stock rose 1.5% after declining 3.6% on Friday when reports of the deal were first announced. Informatica rose 6% on Tuesday to $23.91. It jumped more than 17% on Friday after the reports surfaced.

U.S. Steel was up 2%. The stock soared 21% on Friday after Trump announced a " planned partnership" with Japan's Nippon Steel, throwing his support behind a takeover of U.S. Steel by Nippon Steel that was first floated in late 2023. The president said U.S. Steel's headquarters would remain in Pittsburgh and the partnership would create around 70,000 new jobs and add $14 billion to the economy over the next 14 months.

SUPER MICRO COMPUTER INC rose 3.7%. It ended a five-day losing streak. Coming into the session, shares of the artificial-intelligence server maker had risen 32% this year.

SoundHound AI Inc rose 16% to $11.12. Piper Sandler initiated coverage on SoundHound, the voice-based AI company, with an Overweight rating and a price target of $12.

Trump Media & Technology fell 10%. The company plans to raise $2.5 billion and use the proceeds to create a Bitcoin treasury. "We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets," said CEO Devin Nunes.

U.S.-listed shares of PDD Holdings Inc fell 14% after the Chinese e-commerce giant reported first-quarter earnings that fell 47% from a year earlier. "In the first quarter, we made substantial investments in our platform ecosystem to support merchants and consumers amid rapid changes in the external environment," said Lei Chen, chairman and co-CEO. "These investments weighed on short-term profitability but gave merchants the room to adapt and focus on high-quality, sustainable growth, strengthening the long-term health of the platform."

AutoZone fell 3.7%. The auto-parts retailer missed earnings expectations for its fiscal third quarter and posted a decline in gross margins during the period.

Market News

Okta Shares Tumble After It Offers up Q1 Results, Guidance

Okta Inc. shares fell 13% in extended trading on Tuesday, even as the identity access management company reported fiscal first-quarter results and guidance that topped expectations.

For the period ending April 30, Okta said it earned an adjusted $0.86 per share as revenue rose 12% year-over-year to $688M, including $673M from subscriptions. Analysts had expected adjusted earnings of $0.78 per share on $680.6M in revenue.

Highly Shorted iRobot Soars Amid General Tariff Relief

iRobot jumped in Tuesday trading as investors seemed to view the latest trade and tariff developments as a positive. The delay on tariffs from the U.S. on European Union imports has boosted the view that the harshest tariff scenario will not play out.

The consumer electronics company had publicly stated that the tariff environment posed a serious threat to its business viability and warned of "substantial doubt" about iRobot's ability to continue as a going concern. The SEC filing highlighted macroeconomic and tariff-related uncertainties as key risks.

Shares of iRobot rose to their highest level in 2025 with a 54% pop. Short interest on iRobot (IRBT) stands at 24% of the total float, which could be adding to the volatility.

SpaceX Starship Launched on Ninth Test Flight After Last Two Blew up

Starship, the futuristic SpaceX rocket vehicle on which Elon Musk's ambitions for multiplanetary travel are riding, roared into the sky from Texas on Tuesday on its ninth uncrewed test launch, aiming for a clean flight after the last two attempts ended in explosive failure.

The two-stage spacecraft, consisting of the Starship vessel mounted atop a towering SpaceX Super Heavy rocket booster, blasted off at about 7:36 p.m. EDT (2330 GMT) from the company's Starbase launch site on the Gulf Coast of Texas near Brownsville.