The S&P 500 (^GSPC) rose 0.8% on Tuesday, turning positive for the year after erasing all of its losses as a global tariff war appeared to ease.

As of 10:20 a.m. ET, the broad-based index was up 0.1% since the start of 2025 in a stunning rally from its April 9 lows.

The S&P 500 dropped sharply in the days following President Trump’s tariff policy on April 2, “Liberation Day.” It has clawed back those losses amid tariff pauses, a deal with the UK, and a trade breakthrough with China.

On Tuesday, the S&P 500 was looking to add to Monday’s gain of nearly 3.3% after the US struck an agreement with China, pausing some tariffs against Chinese imports, with both sides agreeing to significantly reduce their duties.

Meanwhile, the Nasdaq Composite (^IXIC) and the Nasdaq 100 (^NDX) entered a new bull market on Monday, up 20% from their April lows.