Dow futures were pointing to an over 350 point gain at Tuesday's open after White House trade advisor Peter Navarro clarified that the U.S.-China trade agreement isn't over. Navarro, a China hawk, claimed his comment to Fox News on Monday night suggesting the deal's demise was taken "wildly out of context." Dow futures nosedived almost 400 points overnight after Fox's interview with Navarro aired.
The Dow Jones Industrial Average on Monday snapped a three-session losing streak with a 0.6% advance. The S&P 500 logged a similar gain. The Nasdaq, which continued to outperform the broader stock market, jumped 1.1%, closing at a record high. Apple, a Dow component and a major stock in the S&P 500 and Nasdaq, finished with a 2.6% gain and another record high close, helping to power Wall Street's rally. Apple shares were up 1.5% in Tuesday's premarket.
President Donald Trump followed up on Navarro's clarification, tweeting late Monday that the U.S.-China trade agreement is "fully intact." But the president added that he hopes China "will continue to live up to the terms" of the deal.
Questions about the status of the China trade deal started Monday evening, when a Fox News host asked Navarro: "Given everything that's happened and all the things you just listed, is that over?" Navarro responded by saying: "It's over."
In a clarifying statement released by the White House, Navarro said his comments "had nothing at all to do with the Phase I trade deal, which continues in place. I was simply speaking to the lack of trust we now have of the Chinese Communist Party after they lied about the origins of the China virus and foisted a pandemic upon the world."
Trump temporarily blocked certain foreign workers from entering the United States. The freeze, which takes effect Wednesday, includes H-1B visas for skilled employees, which are used heavily by U.S. technology companies and multinational corporations.
The Business Roundtable, which advocates on behalf of many of America's biggest companies, and the U.S. Chamber of Commerce said they are concerned about the changes creating disruptions to companies' operations. The Trump administration described the effort as a way to free up jobs for Americans in an economy reeling from the coronavirus.
White House health advisor Dr. Anthony Fauci is set to provide testimony and answer questions during a House panel hearing on the coronavirus on Tuesday morning. Fauci's appearance comes more than a month after he told a Senate panel that some states were prematurely reopening businesses and risking new outbreaks. Fauci's prophetic warning about virus spikes has come to pass as Covid-19 hospitalizations were growing in 14 states as of Sunday, according to a CNBC analysis of Johns Hopkins University data.
Cases are growing by 5% or more in 25 states across the U.S., including Texas, where the governor said the state will have to take "tougher actions" if daily coronavirus cases and hospitalizations continue to climb at current rates, and Arizona, where Trump plans to hold an indoor campaign rally Tuesday after last weekend's rally in Oklahoma.
Major League Baseball plans to impose a 60-game schedule for its shortest season since 1878 after the players' union rejected a negotiated deal of the same length. The decision could lead to lengthy and costly litigation over the impact of the coronavirus on baseball.
Within hours of the Major League Baseball Players Association's decision, the league released a statement informing the union it would "proceed with the 2020 season under the terms of the March 26th Agreement." MLB asked the union to respond by 5 p.m. ET on Tuesday on whether players can report to training by July 1 and whether the players' association would agree on the operating manual regarding health and safety protocols.
— The Associated Press and Reuters contributed to this report. Follow all the developments on Wall Street in real-time with CNBC's live markets blog. Get the latest on the pandemic with our coronavirus blog.