The U.S. stock market maintained its upward trend on Tuesday because the S&P 500 increased 0.6% for six consecutive days while the Dow Jones Industrial Average added 300 points (0.7%) and the Nasdaq composite rose 0.5%. The market rally was fueled by strong corporate earnings yet CEOs expressed doubts about how President Donald Trump’s trade war would affect profit stability. Honeywell International stock price increased 5.4% because the company exceeded earnings and revenue predictions while also increasing its annual projections. Sherwin-Williams stock increased by 4.8% because the company delivered higher profits than analysts predicted despite its prediction of weak customer demand through 2025.
Honeywell’s CEO Vimal Kapur confirmed that the worldwide market demand remains unclear yet he stressed the company’s ability to resist tariff effects because of its regional supply chain. Sherwin-Williams’ CEO Heidi Petz expressed cautious optimism because the company’s localized supply chains provided protection against market fluctuations. The market fears that Trump’s 145% tariffs on China will disrupt trade relationships and cause price inflation which could lead to a recession. The Commerce Department will release Q1 GDP data which analysts predict will demonstrate growth rates below 1% because of trade-related economic slowdowns.
Markets across the world demonstrated different reactions to the news. The eurozone experienced a 0.4% Q1 growth rate that suffered from tariff-related issues yet Germany’s DAX index increased 0.7% because of political stability. The Nikkei 225 index in Tokyo increased 0.6% but Chinese markets declined because export orders decreased. The market rally on Wall Street continues despite strong earnings reports because investors remain cautious about trade policy uncertainty which may lead to economic instability.
