Washington: US stocks ended higher Tuesday after Commerce Secretary Howard Lutnick announced the successful negotiation of a trade agreement with an undisclosed country, pending approval for a formal announcement.

According to Anadolu Agency, Lutnick revealed in an interview with CNBC that although the deal is finalized, he must wait for the other country's prime minister and parliament to approve it. The specifics of the country involved remain confidential.

The S and P 500 saw an increase of 0.58%, or 32.08 points, closing at 5,560.83. Similarly, the Nasdaq rose 0.55%, finishing at 17,461.32 points, while the Dow climbed 0.75% to close at 40,527.62 points. This positive trend in the stock market is attributed to optimism surrounding the prevention of a trade war due to the potential trade agreements.

Further boosting investor confidence was the news that US President Donald Trump plans to sign an executive order aimed at reducing the impact of auto tariffs. While spokesperson Karoline Leavitt did not disclose specifics, a senior Commerce Department official mentioned that the order would include a 15% rebate for vehicle manufacturers completing automobiles domestically to offset tariffs on imported parts.

Treasury Secretary Scott Bessent emphasized the President's commitment to reviving US auto manufacturing. He stated that the administration's goal is to facilitate quick and efficient auto production domestically, maximizing job creation.

On the economic front, the US Consumer Confidence Index dropped by 7.9 points to 86 in April, marking its lowest level since August 2020. Additionally, the US trade balance experienced a record monthly deficit of $161.99 billion in March. Job openings in the US were reported at 7.192 million in March, falling short of expectations. Meanwhile, the VIX Index, known as the 'fear index,' decreased by 3.9% to 24.17.