The Dow Jones Industrial Average surged 450 points, or 1%, and the S&P 500 moved up 0.7%, on course for a record high close. The tech-heavy Nasdaq composite rose 0.5%. Small caps on the Russell 2000 climbed 1%.

The Dow, S&P 500, and Nasdaq rose as the stock market reacted to the U.S.-Japan trade deal and digested more earnings reports. The S&P 500 and Nasdaq hit closing records.

A trade spokesperson for the European Commission (EC), Olof Gill, noted that “the EU’s primary focus is on achieving a negotiated outcome with the US”, but noted that the EU remains ready to use its anti-coercion instruments (ACI) to fast-track retaliatory tariffs should a trade deal fall through.

The Dow Jones Industrial Average led the major indexes Tuesday. Homebuilder stocks rallied after two leaders posted positive earnings results.

US Stock market today ended higher as the Dow Jones, S&P 500, and Nasdaq all posted modest gains amid upbeat earnings reports and a surprise jump in retail sales. Investors are cautiously optimistic despite political tension as President Trump continues pressuring Fed Chair Jerome Powell over interest rate cuts.