US stock indices traded marginally higher on Tuesday, showing signs of stability after two volatile sessions driven by economic uncertainty and political tension over tariffs.

The S&P 500 inched up 0.1% in early trade, while the Dow Jones Industrial Average rose 77 points, or 0.2%. The Nasdaq Composite also added 0.1%, AP reported.

The gains came amid persistent concerns over President Donald Trump's tariff measures, which investors fear could dent corporate margins and global trade. However, optimism over potential interest rate cuts by the Federal Reserve later this year and strong quarterly results from top firms offered support.

AI platform Palantir Technologies led gains, rallying 7.5% after posting better-than-expected earnings and raising its full-year revenue guidance. CEO Alex Karp said, "We continue to see the astonishing impact of AI leverage."

Chemical major DuPont climbed 4.5% after surpassing analyst expectations on both profit and revenue and raising its full-year outlook, despite warning of a $20 million tariff impact in the second half of 2025.

The broader market, however, remained cautious. Yum Brands slipped 0.7% after reporting slightly weaker-than-expected results. Hims & Hers Health fell 12.2% as its revenue missed forecasts despite a profit beat.

With major indices near record levels following a sharp rally since April, investors are demanding stronger corporate earnings or signs of policy easing to justify high valuations. The next major trigger is the Federal Reserve's policy meeting in September, where hopes are high for a rate cut following a weaker-than-expected US jobs report last Friday.

The 10-year Treasury yield held steady at 4.22%, down from 4.39% before the jobs data, as rate-cut expectations firmed.

Overseas, global markets were mostly higher across Europe and Asia. However, India's Sensex declined 0.4%, as investors reacted to growing trade friction with the US over New Delhi's continued crude oil imports from Russia.

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