Wall Street Gains as Tariffs Loom and Musk Blasts Spending Bill

U.S. stocks closed higher Tuesday, capping a session dominated by tariff headlines, a major energy deal, and sharp political commentary from Elon Musk. The Dow Jones Industrial Average rose 214.16 points, or 0.51%, to end at 42,519.60. The Nasdaq Composite led major benchmarks with a gain of 156.34 points, or 0.81%, to 19,399.00, while the S&P 500 advanced 34.44 points, or 0.58%, to finish at 5,970.38. The Russell 2000 outpaced all with a 1.60% jump to 209.00.

Markets held their gains through the afternoon as investors digested the White House’s announcement that a 50% tariff on steel and aluminum imports will take effect Wednesday. The move, doubling the existing levy, is aimed at protecting U.S. producers. President Donald Trump, speaking at a rally in Pittsburgh over the weekend, said the measure would “ensure the survival of US Steel” and support domestic investment through a potential deal with Japan’s Nippon Steel.

The announcement sent mixed signals through global markets. While the Stoxx 600 index in Europe slipped 0.18%, some exporters like SSAB rose on expectations of higher U.S. plate prices. Meanwhile, the U.S. dollar showed signs of weakness amid concerns over Trump’s broader protectionist policies.

A separate catalyst for the day’s gains came from Meta Platforms’ 20-year power purchase agreement with Constellation Energy. The deal will supply Meta with over 1,100 megawatts of nuclear energy from Illinois’ Clinton Clean Energy Center, ensuring operations through 2047. Urvi Parekh, Meta’s Head of Global Energy, called the agreement “vital to the company’s AI ambitions,” while Constellation CEO Joe Dominguez said it marked “a model for how America’s clean energy future can be driven by partnerships with forward-thinking companies

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Yet not all voices were optimistic. Elon Musk took to his social media platform X to rail against a massive tax-and-spending-cut bill supported by President Trump, calling it a “disgusting abomination” and warning that it would “explode federal budget deficits.” Musk added, “Shame on those who voted for it: you know you did wrong. You know it”.

Despite the strong finish, traders remained cautious ahead of a potentially pivotal phone call between President Trump and China’s President Xi Jinping. While no date has been set, White House officials said the conversation could happen “very soon” as tensions simmer over recent trade negotiations.

Tuesday’s gains suggest investors are selectively optimistic, favoring domestic growth themes even as political and geopolitical risks linger.