The stock market showed gains Wednesday, with major indices finishing higher, though optimism about a swift U.S.-China trade deal gave way to caution.

The Dow Jones rose 1.2%, the S&P 500 increased by 1.6%, and the NASDAQ jumped 2.5%, supported by mixed corporate news. Tesla shares surged 6% on strong first-quarter profits and CEO Elon Musk’s commitment to focus more on the company. Intel's stock climbed after reports that it plans workforce cuts to boost efficiency, while Boeing recorded its first quarterly revenue growth since 2023, lifting shares 6%. In contrast, Enphase shares dropped sharply after missing earnings expectations and lowering its revenue forecast.

However, Treasury Secretary Scott Bessent dampened hopes for a quick resolution of trade tensions by denying any immediate tariff reductions from the U.S. side, suggesting the administration awaits China’s response. Reports also indicate Chinese leadership is unlikely to accept early concessions, indicating the trade conflict may persist longer than some investors expected.

This development underscores that while markets are buoyed by encouraging corporate results, geopolitical uncertainties around trade remain a significant factor influencing investor sentiment.