Wall Street eases after two-day rally

US markets took a breather on Tuesday, with the major indexes posting slight declines as tariff volatility subsided and investors digested a fresh wave of corporate earnings.

The Dow Jones fell 156 points, or 0.38%, to close at 40,369. The S&P 500 edged down 0.17%, while the Nasdaq was virtually flat, down just 0.05%. After sharp swings last week, the mood was noticeably calmer, with the CBOE Volatility Index—Wall Street’s so-called “fear gauge”—falling to around 30, roughly half of last week’s peak.

While a recent tariff exemption on smartphones and semiconductors provided short-term relief, there are still lingering concerns. President Trump and Commerce Secretary Howard Lutnick suggested over the weekend that the exemptions could be temporary.

Despite two strong sessions to start the week, the major indexes are still working to recover from losses sparked by Trump’s April 2 tariff announcement. The Dow and Nasdaq are each down 4.4% this month, while the S&P 500 has dropped nearly 5%.

Investors were buoyed by stronger-than-expected earnings from some of the country’s largest banks. Bank of America shares rose 3.6%, while Citigroup gained nearly 2%, helping lift financial stocks across the board. The SPDR Bank ETF climbed more than 1%.

Palantir Technologies extended gains, rising 6.3% after NATO confirmed it would adopt the firm’s artificial intelligence platform for operational use.

Meanwhile, Boeing shares slipped more than 2% after a Bloomberg report said Chinese regulators had instructed local airlines to halt new aircraft deliveries from the US planemaker.

WTI crude is trading 0.32% lower at US$61.33 a barrel.

Spot gold is trading flat at US$3,230.69 an ounce.

One Australian dollar is buying 63.37 US cents.

The ASX is expected to open slightly higher this morning, mirroring Wall Street’s subdued finish. Key local earnings are due from Bank of Queensland, Iluka, Karoon Energy and Rio Tinto.

The SPI futures are pointing to a mild 3 point fall.