Markets Are Betting on Success in China Trade Talks

US stocks drifted just below their all-time highs on Tuesday as the wait continues to hear what will come of trade talks underway between the United States and China.

• The S&P 500 rose 32.93 points, or 0.5%, to 6,038.81.
• The Dow Jones Industrial Average rose 105.11 points, or 0.2%, to 42,866.87.
• The Nasdaq composite rose 123.75 points, or 0.6%, to 19,714.99.

The hope is that President Trump will lower his tariffs on China and other countries after reaching trade deals with them, and stocks have already rallied strongly on such expectations, the AP reports. The talks were "going well," Commerce Secretary Howard Lutnick said as he arrived Tuesday morning.

Even though many tariffs are on hold for the moment, they're still affecting companies and their ability to make profits because of all the uncertainty they've created. Designer Brands, the company behind the DSW shoe store chain, became the latest US company to yank its financial forecasts for 2025 because of "uncertainty stemming primarily from global trade policies." The company, which also owns the Keds, Jessica Simpson, and other shoe brands, reported a larger loss for the start of the year than analysts were expecting, and its revenue also fell short of forecasts. The company's stock tumbled 18.2%. But the uncertainty is moving in both directions: A survey released Tuesday found that optimism among small US businesses improved a bit in May.

JM Smucker fell 15.6% even though its results for the latest quarter topped analysts' expectations. Its revenue fell short of expectations, as did its forecast for profit in the upcoming year. Tesla helped to offset such losses after rising 5.7%. The electric vehicle company has been recovering since tumbling last week as Elon Musk's relationship with Trump imploded, raising fears about possible retaliation by the US government against Musk's companies. Casey's General Stores leaped 11.6% after the Iowa-based chain of convenience stores reported a stronger profit for the latest quarter than analysts expected. It credited strength in sales of hot sandwiches and other items. (More stock market stories.)