US benchmark equity indexes rebounded Tuesday amid hopes for a de-escalation in trade rifts between the US and China.

The Nasdaq Composite and the Dow Jones Industrial Average each closed up 2.7% at 16,300.4 and 39,187, respectively, following a four-day losing streak. The S&P 500 rose 2.5% to 5,287.8. All sectors were in the green, led by financials and consumer discretionary.

US Treasury Secretary Scott Bessent expects the trade standoff between Washington and Beijing to de-escalate in the near future, CNBC reported Tuesday, citing a person who attended a closed-door investor summit.

"No one thinks the current status quo is sustainable," Bessent reportedly said at the meeting hosted by JPMorgan Chase.

Earlier this month, President Donald Trump declared a 90-day pause on reciprocal levies for non-retaliating countries. However, the US and China have been in a deadlock, having raised tariffs on each other's goods multiple times.

Trump said in a social media post on Tuesday that he spoke with Israel Prime Minister Benjamin Netanyahu to discuss topics including trade in a call that "went very well."

Washington is nearing general trade agreements with Japan and India, though full details may not be finalized until a later date, Politico reported Tuesday, citing people close to the White House.

US Treasury yields were mixed intraday, with the two-year rate rising 5.5 basis points to 3.83% and the 10-year rate dropping 1 basis point to 4.40%.

Gold was down 1% at $3,391 per troy ounce after briefly trading above $3,500 to an all-time high earlier on Tuesday. Silver edged 0.1% lower to $32.80 per ounce.

In economic news, the International Monetary Fund lowered its global and US economic growth expectations for 2025 and 2026 amid ongoing trade tensions and policy uncertainties.

"The global economic system under which most countries have operated for the last 80 years is being reset, ushering the world into a new era," IMF Economic Counsellor Pierre-Olivier Gourinchas said. "Despite the slowdown, global growth remains well above recession levels."

In the corporate world, 3M (MMM) shares jumped 8.1%, the top performer on the Dow and among the best on the S&P 500. The industrial conglomerate quantified the potential impact from tariffs and opted to maintain its full-year earnings outlook despite reporting better-than-expected results for the first quarter.

Equifax (EFX) was the best performer on the S&P 500, up nearly 14%, after the company delivered a first-quarter beat.

Northrop Grumman (NOC) cut its full-year earnings outlook as steep losses on the B-21 stealth bomber program dented its first-quarter profit. The defense contractor's shares slumped nearly 13%, the steepest decline on the S&P 500.

RTX (RTX) projects a pretax operating profit impact of around $850 million from Trump's tariffs, Chief Financial Officer Neil Mitchill Jr. said on an earnings call. The company's shares were down 9.8%, the second-worst S&P 500 performer.

West Texas Intermediate crude oil was up 1.8% at $64.2 a barrel.