Dow rebounds 800 points on rising hopes for tariff deals: Live updates

The S&P 500 can rise back up to 5,400, according to Sam Stovall, chief investment strategist at CFRA Research.

Stovall said investors expect that the White House is negotiating with foreign countries after President Donald Trump unveiled his tariff plan last week, which sent financial markets into a tailspin. He also said they are expecting some concessions from trading partners.

Hitting the 5,400 level would mean the broad index gained 6.7% over where it finished Monday's session.

"I think we probably have to go up to about the 5,400 level on the S&P, which would represent the September retest of 2024," Stovall said on CNBC's "Squawk on the Street." "That becomes resistance."

— Alex Harring

Health care provider stocks were rallying on Tuesday.

The jump comes after the Center for Medicare & Medicaid Services announced late Monday that government payments to Medicare Advantage plans would increase by an average of 5.06% for 2026. That is above 2.23% increase that was previously proposed.

Humana was a standout within that industry group, with the stock jumping 12%.

— Jesse Pound, Nick Wells

Tuesday's stock rally was broad based, with 474 S&P 500 advancers during midday trading.

All 11 S&P 500 sectors were trading in positive territory, with information technology the best-performing sector, while materials was the biggest laggard.

Information technology, which was up by more than 4%, was buoyed by a number of chip stocks. Shares of Palantir Technologies and Western Digital climbed more than 8%, each. Broadcom gained 8%. Nvidia rose more than 6%.

Humana was the top-performing stock, rallying along with other health care companies after Wall Street Journal reported the Trump administration will raise payment rates for Medicare insurers next year. Humana was last higher by 10%. CVS Health, which was the third-best performing stock in the S&P 500, jumped more than 8%.

— Sarah Min

Semiconductor funds on Tuesday headed for their best days in several months as the market rebounded.

The VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) jumped more than 5% and 4%, respectively, as of shortly before 10:15 a.m. ET. Both were tracking for their biggest one-day gains since August.

SMH and SOXX, 1-day

Marvell Technology and Broadcom led the sector higher, rallying more than 9% and 8%, respectively. Retail investor favorite Nvidia also climbed, with shares of the artificial intelligence titan popping more than 7%.

Still, the SMH ETF has dropped more than 8% compared with where it traded five sessions earlier. The SOXX fund has plunged around 10% over that period.

— Alex Harring

The Russell 2000 jumped more than 3% Tuesday, reversing Monday's losses to turn positive for the week.

Month to date, the benchmark small cap index remains 7.3% lower following the broad selloff on fears President Donald Trump's tariff policy could lead to a recession.

Russell 2000 on Tuesday

Apple's tumbling stock price presents an "enhanced buying opportunity for investors to own a high-quality name," said Bank of America analyst Wamsi Mohan

The iPhone maker's shares have fallen about 25% so far this year due in large part to geopolitical uncertainty around Trump's tariffs and the delay of Siri features with artificial intelligence, Mohan said.

But the tech company has typically booked gains in the 12 months after an event that narrows its price-to-earnings ratio, the analyst told clients in a Tuesday note.

It's possible that the risk of tariff escalation with China could pose a more severe threat to Wall Street's consensus estimates for Apple, Mohan said.

But Apple has options to mitigate downside risk, including shifting production to India, increasing prices, change the pace of product releases, and wringing efficiencies out of its supply chain.

— Spencer Kimball

Billionaire investor Ray Dalio said he's worried about negative impact of Trump's tariffs as they drive up costs and lower corporate revenue.

"What does it mean for a company? It means costs are going to go up, revenue is going to go down, and capital is going to be harder to come by," Dalio said Tuesday on CNBC's "Squawk Box." "I am very concerned about the solution ... the practicality of the solution."

The founder of Bridgewater, one of the world's largest hedge funds, said it will also create "great sand in the gears of production worldwide" at the same time.

— Yun Li

U.S. stocks began Tuesday's session in the green.

The S&P 500 advanced 3.2%. The Dow Jones Industrial Average climbed 3.5%, while the Nasdaq Composite gained around 3.6%.

— Hakyung Kim

Small business confidence waned in March as the outlook for future conditions decreased by the most in more than four years, according to the National Federation for Independent Business.

The NFIB's headline optimism index hit 97.4 for the moth, down 3.3 points from February and below the Dow Jones estimate for 98.7. In addition, the net share of owners expecting better business conditions tumbled 16 points to 21%, the biggest monthly fall since December 2020.

"The implementation of new policy priorities has heightened the level of uncertainty among small business owners over the past few months," said NFIB chief economist Bill Dunkelberg. "Small business owners have scaled back expectations on sales growth as they better understand how these rearrangements might impact them."

—Jeff Cox

Monday's trading session saw the highest trading volume on the SPDR S&P 500 ETF (SPY) since 2020, which could signal a short-term bottom in the stock market, according to BTIG technical strategist Jonathan Krinsky.

"Over the past ten years, the four prior largest notional volume days all marked tactical lows, but all of those were re-tested and in some cases meaningfully broken over the ensuing weeks. In three of those four cases the high notional volume day also marked the intraday peak for VIX," Krinsky said in a note to clients. The "VIX" refers to the Cboe Volatility Index.

"We think this set-up is likely this time around in that we are seeing 'a' bottom for stocks and peak for VIX, but then re-test and possibly break to lower lows over the coming weeks/months," Krinsky continued.

The bounce could be substantial, as historical precedents suggest the S&P 500 may cut its recent losses in half before turning lower again, Krinsky said.

— Jesse Pound

Chipmaker Micron Technology is considering applying a tariff-related surcharge on certain customers beginning April 9, according to a report from Reuters.

The company previously indicated the possibility of such a plan during its earnings call on Mar. 20.

President Donald Trump's retaliatory tariffs on major trading partners are set to take effect on April 9.

Micron shares jumped 4% Tuesday before the bell.

Micron Technology shares Tuesday

These are the stocks moving the most in premarket trading:

• Levi Strauss — The jeans maker surged 11% after posting first-quarter adjusted earnings of 38 cents per share, which was 52% higher versus its year-ago period.
• Broadcom — Shares popped 3% after the chipmaker announced a $10 billion share repurchase program authorization through year-end.
• Marvell — Shares advanced 4% in premarket trading after the company agreed to sell its auto ethernet business to Infineon Technologies for $2.5 billion in cash.

Read the full list of stocks moving here.

— Lisa Kailai Han

Apple shares have plunged 19% over the last three trading sessions, marking its worst three-day performance since 2001, according to Goldman Sachs.

During this period, the iPhone maker has lost around $638 billion in market capitalization, per CNBC estimates. This is a larger value than the market capitalization of 489 companies in the S&P 500.

Shares added 1.3% Tuesday before the bell.

Apple shares over the last five days

Broadcom shares popped 3% in the premarket after the chipmaker announced a $10 billion share repurchase program authorization through year-end.

The announcement "reflects the board's confidence in the strength of Broadcom's diversified semiconductor and infrastructure software product franchises. In particular, we are uniquely positioned in mission critical infrastructure software and enabling hyperscalers to drive innovation in generative AI into their expanding subscriber platforms," CEO Hock Tan said in a statement.

AVGO pops

European stocks made broad gains on Tuesday, reversing course after closing sharply lower on Monday.

The pan-European Stoxx 600 was 1.3% higher at 8:16 a.m. in London. Every sector barring telecom was in positive territory, with all major bourses edging higher.

London's FTSE 100 and the French CAC 40 each added around 1.4%, while the German DAX gained 0.8%.

— Chloe Taylor

Levi Strauss shares are up more than 1% in extended trading after reporting a fiscal first-quarter earnings beat and reiterating its full year outlook. The catch is the forecast excludes any impacts from the Trump administration's tariffs.

Telsey Advisory Group CEO Dana Telsey told CNBC's "Closing Bell Overtime" that Levi's management is giving themselve some "wiggle room" by not raising their earnings estimates after its latest beat. However, she expects the tariffs are going to put pressure on retailers.

"The diversification of sourcing that they talked about is certainly critical, but prices are going up," Telsey said.

Telsey said investors should stick with companies that have U.S. manufacturing like Bath & Body Works, are known for value or sell products like groceries that you can't live without. She named TJX, Burlington and Costco as examples.

— Christina Cheddar Berk

Market participants traded about 29 billion shares on Monday, resulting in the highest volume day in at least 18 years, according to FactSet and Nasdaq Trader.

It was a rocky day for stocks, with the S&P 500 briefly touching bear market territory and the Dow Jones Industrial Average seeing a swing of 2,595 points from its low to the high of the session.

Monday's volume surpassed Friday's volume of 26.77 billion shares, as well as the 10-day average volume of 16.94 billion shares.

— Gina Francolla, Darla Mercado

Some stocks are making big moves in extended trading:

• Health-care stocks — Shares of Humana, CVS Health and UnitedHealth jumped after The Wall Street Journal reported that the Trump administration will raise payment rates for Medicare insurers next year to 5.06%, higher than the 2.23% increase the Biden administration had proposed. Humana gained more than 13%, while CVS Health and UnitedHealth advanced more than 7% and about 6%, respectively.
• Levi Strauss — The clothing stock rose more than 1% after the company reported its first-quarter results. Levi Strauss reported adjusted earnings of 38 cents per share, a 52% jump compared to the prior-year period. Revenue of $1.53 billion for the period also marked a 3% jump compared to last year.
• Broadcom — The semiconductor stock moved more than 2% higher following the company's authorization of a new $10 billion share repurchase program, effective through Dec. 31.

Read the full list here.

— Sean Conlon

Stock futures opened higher on Monday evening after another volatile session on Wall Street.

Futures tied to the S&P 500, along with Nasdaq-100 futures, gained 0.6%. Futures linked to the Dow Jones Industrial Average jumped 321 points, or 0.8%.

— Sean Conlon