Stock Market Today: Stocks Soar on China Trade Talk Hopes
Treasury Secretary Bessent said current U.S.-China trade relations are unsustainable and signaled hopes for negotiations.



Stocks saw big price moves again on Tuesday, only this time, the action was to the upside. Sentiment was boosted from the latest round of corporate earnings and encouraging trade headlines.
Blue chip stocks were in focus today, with 3M (MMM) and GE Aerospace (GE) among those reporting.
MMM shares jumped 8.1% – making it the best Dow Jones stock Tuesday – after the company reported higher-than-expected first-quarter earnings and revenue.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
More importantly, the industrial conglomerate reiterated its full-year guidance for earnings per share of $7.60 to $7.90. However, it cautioned against "tariff sensitivity" that could lower the final figure by 20 cents to 40 cents a share.
"Tariffs are going to be a headwind this year, but we thought it would be prudent to hold the impact outside of our full-year guidance, while I digest the new policies and fully develop and quantify mitigation plans," said 3M CEO William Brown in the company's conference call.
GE has a plan for tariffs
GE stock gained 6.1% after the maker of commercial and defense aircraft engines reported a first-quarter beat.
GE Aerospace also maintained its 2025 outlook, saying the company's cost-cutting measures and strong commercial services backlog will help offset the $1 billion hit it expects to take from President Donald Trump's tariffs.
And GE Chief Financial Officer Rahul Guy noted in the company's earnings call that the potential impact of tariffs is included in its guidance.
RTX braces for an $850 million tariff impact
Elsewhere in the defense space, RTX (RTX) plunged 9.8% after the company said it expects its bottom line to take an $850 million hit from tariffs this year – a figure that doesn't include the administration's reciprocal tariffs that are currently paused.
"Generally speaking, the aerospace and defense sector has operated in a duty-free environment, and that has been instrumental to the industry maintaining one of the largest trade surpluses across American manufacturing industries for decades," said RTX CEO Chris Calio in the company's earnings call.
And because RTX's supply chain is global, Calio said the company will be impacted if Trump's current trade policies stay in place "because not all regulatory and operational mitigations would address our tariff exposure."
Still, CFRA Research analyst Matthew Miller reiterated a Buy rating on the industrial stock.
The analyst believes RTX's solid first-quarter results, which came in higher than expected, robust backlog and "ongoing recovering in commercial aerospace and sustained defense demand" position it well for continued growth this year.
Bessent expects U.S.-China trade tensions to ease
On the trade front, Bloomberg reported that Treasury Secretary Scott Bessent expects to de-escalate trade tensions with China.
Bessent was said to have told attendees at an investor summit that although negotiations with Beijing have not yet begun, a trade deal is still a possibility.
"No one thinks the current status quo is sustainable," he noted, and expressed his belief that discussions between the two countries would provide "a sigh of relief for markets."
That was certainly the case today. At the close, the Dow Jones Industrial Average finished up 2.7% at 39,186, the S&P 500 gained 2.5% to 5,287, and the Nasdaq Composite added 2.7% to 16,300.
Related content
- How Can Investors Profit From AI's Energy Use?
- Can Trump Fire Powell? A Supreme Court Case Could Decide
- Earnings Calendar and Analysis for This Week
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Dow Rips 846 Points to New All-Time High: Stock Market Today
Fed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
-
Test Out Your Retirement Before You Call It Quits
It's not easy to take a retirement back. Before you make the plunge, test the waters with these tips.
-
Dow Rips 846 Points to New All-Time High: Stock Market Today
Fed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
-
Bonds Pay in Good and Bad Times
Bonds can act as a financial safety net through good times and bad. But different bonds carry different returns and risks, so do your homework before investing.
-
When You Need Capital Quickly, Think 'Ready, Set, Fund': A Financial Adviser's Strategy
Investors must be able to free up cash to meet short-term needs from time to time. This strategy will help you access capital without derailing your long-term goals.
-
I'm an Estate Planner: Moving Family Assets to a Safe Haven Abroad Could Be a Huge Headache for Your Heirs
In troubled times like these, wealthy clients may seek financial refuge outside of the U.S. But that could cause more tax and estate problems than it solves.
-
S&P 500 Extends Losing Streak Ahead of Powell Speech: Stock Market Today
Stocks continued to struggle ahead of Fed Chair Powell's Friday morning speech at Jackson Hole.
-
A Timeline of Warren Buffett's Life and Berkshire Hathaway
Buffett was the face of Berkshire Hathaway for 60 years. Here's a timeline of how he built the sprawling holding company and its outperforming equity portfolio.
-
Powell Signals Rate Cuts in His Jackson Hole Speech. Here's What Wall Street is Saying
In his speech at the Jackson Hole symposium Friday, Fed Chair Jerome Powell said current conditions "may warrant" rate cuts.
-
Fall Is Tax Time? Yes! Act Now to Make Needed Adjustments
Review your withholdings, contribute to tax-saving HSA and FSA accounts, manage a bonus' impact and adjust for major life events such as weddings and job changes.