U.S. stocks pared gains as traders assessed the latest reports on the White House’s progress in fleshing out trade deals with top economic partners. Treasuries and the dollar remained steady.

The S&P 500 was 1.6% higher after rising nearly 3% earlier following Bloomberg News’ report of closed-door comments by Treasury Secretary Scott Bessent saying the tariff standoff with China is unsustainable and that he expects the situation to de-escalate.

White House Press Secretary Karoline Leavitt, in a news briefing, said that the progress is being made on trade deals and that the “ball is moving in the right direction with China.” It follows a Politico report that it may take months for the U.S. to reach final trade deals with certain countries.

Treasuries and the dollar still posted smaller moves on Tuesday, showing greater stability after Monday, when investors were worried about the implications of any effort to replace the Federal Reserve Chair by President Donald Trump, who has berated Powell for being slow to cut interest rates.

Similar to yesterday, Tuesday’s big moves in stocks came amid lighter-than-usual trading, a backdrop that sometimes exacerbates swings. Volume in Nasdaq 100 shares was about 13% below the recent average, data compiled by Bloomberg show, while Monday’s post-Easter level was around 20% off the historical pace.

“We are in a period of extreme uncertainty, where one should not react too much to daily moves,” Anwiti Bahuguna, Northern Trust Asset Management’s CIO of global asset allocation, said on Bloomberg Television on Tuesday.

Gold pared gains after rising to a record high past $3,500. Bitcoin advanced more than 4%.

Among individual stock movers:

—All members of the Bloomberg Magnificent Seven Index are trading higher on Tuesday

—3M Co. rose as much as 8.6% after it stood by its full-year financial guidance while acknowledging new risks from the trade war

—Northrop Grumman Corp. reported first-quarter profit that missed analysts’ expectations and cut its earnings forecast for the year — shares are down 13%

—Shares of RTX Corp., an aerospace and defence giant, fell as much as 9.6% after the company said tariffs pose a significant risk to operating profit

—Verizon Communications Inc. reported a larger-than-expected decline in mobile-phone subscribers in the first quarter. Shares are flat

Central-bank speakers

Traders also heard from several central-bank speakers on Tuesday. European Central Bank’s President Christine Lagarde told CNBC that the bank has almost achieved its goal of returning inflation to 2% but must be flexible as the economic backdrop becomes more volatile.

Earlier, Fed vice chair Philip Jefferson said the central bank’s goals of stable prices and maximum employment can help foster economic mobility. And Philadelphia Fed President Patrick Harker wrote in an essay released Tuesday that measuring economic stability with the federal poverty line can fail to provide an accurate picture of the struggles among lower-income households.

Tariffs

Even though stocks seem to be bouncing back on Tuesday, concerns that Trump may be preparing to fire Powell have added to unease for traders already grappling with the turmoil unleashed by the president’s tariff onslaught.

Trump’s policies and his broadsides against the Fed have forced a reappraisal of the dollar and Treasuries as havens in times of stress. The IMF said the latest escalation in the trade war risks saddling China and the U.S. with losses — and that it could only get worse after this year. Yet, some traders are waiting to see how negotiations play out with allies.

“We are looking at more successful trade negotiations with key trading allies. I put Europe, India, Japan, South Korea, Australia in that category,” Stuart Kaiser, head of equity trading strategy at Citigroup Inc, said on Bloomberg Television on Tuesday. “I think we will see good progress there and that is good for markets.”

Attention later Tuesday will shift to Tesla, which reports first-quarter earnings after market close. The stock is up 6% Tuesday but remains about 40% lower year-to-date as controversy over Chief Executive Officer Elon Musk’s role in the federal government has contributed to a global sales slump.

Meanwhile, the U.S. said it’s made “significant progress” toward a bilateral trade deal following talks between Vice President JD Vance and Indian Prime Minister Narendra Modi. Vance on Tuesday called on India to buy more American goods, particularly energy and military equipment. Trump has repeatedly criticized the country for high tariffs.

Some of the main moves in markets:

Stocks

—The S&P 500 rose 1.6% as of 1:32 p.m. New York time

—The Nasdaq 100 rose 1.9%

—The Dow Jones Industrial Average rose 1.7%

—The MSCI World Index rose 1.2%

Currencies

—The Bloomberg Dollar Spot Index rose 0.3%

—The euro fell 0.6% to $1.1446

—The British pound fell 0.2% to $1.3351

—The Japanese yen fell 0.2% to 141.12 per dollar

Cryptocurrencies

—Bitcoin rose 4.3% to $91,125.56

—Ether rose 7.4% to $1,694.41

Bonds

—The yield on 10-year Treasuries declined two basis points to 4.39%

—Germany’s 10-year yield declined three basis points to 2.44%

—Britain’s 10-year yield declined two basis points to 4.54%

Commodities

—West Texas Intermediate crude rose 2.6% to $64.70 a barrel

—Spot gold fell 0.6% to $3,401.95 an ounce

(With assistance from Lynn Thomasson, John Viljoen and Julien Ponthus.)

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