U.S. Stocks Rise 1.7% as Trade War Eases, Tesla Surges 10%

U.S. stocks experienced their first two-day consecutive rise since early April, with signs of easing in the trade war stalemate. This development comes as President Trump appears to be reconsidering his most aggressive stances on trade and the Federal Reserve. The S&P 500 index closed up 1.7%, after briefly surging 3.4% during the session. Investors are trying to gauge the sincerity of Trump's signals regarding trade negotiations with partners.

Despite a series of disappointing earnings reports, Tesla's stock price surged. This was due to Elon Musk's promise to dedicate more time to the electric vehicle manufacturer starting next month, which alleviated investor concerns over the company's worst quarterly performance in recent years. Boeing's stock also rose, as the company's first-quarter earnings exceeded Wall Street expectations. Intel's stock price increased as well, with the company planning to announce significant job cuts this week.

Michael Kantrowitz of Piper Sandler & Co. noted that given the current policy environment, the focus is not on predicting earnings or economic outlook. "Once the policy environment becomes clearer and its impact on the market diminishes, expectations about economic and corporate earnings prospects will once again become important," he said. Kantrowitz advised investors to maintain a balanced portfolio of companies with stable fundamentals during this uncertain period. "While we believe the market is not yet out of the woods, historical experience suggests that as major issues begin to 'heal,' market corrections often stabilize," he added.

Despite the two-day rally, the S&P 500 index remains in a downward trend since April 2, when Trump announced his tariff plans. The market has been volatile, with the S&P 500 experiencing five trading days of more than 2% declines and two trading days of more than 2% gains within just 14 trading sessions.