Stock market today: S&P 500, Dow end at record as investors shake off tariff fears, digest Fed minutes

US stocks rose to records on Tuesday, as indexes recovered from Donald Trump's market-moving tariff plans announced Monday evening and as traders digested the minutes of the Federal Reserve's last meeting.

Investors were surprised on Monday evening by the President-elect's social media announcement that imports from China will face an extra 10% tariff , while products from Mexico and Canada should expect a 25% duty.

Trump said on Monday that these will stay in effect until drug and migrant flows are addressed by each country. Stocks sold off after hours before recovering early Tuesday.

The S&P 500 and Nasdaq rose 0.57% and 0.63%, respectively, while the Dow Jones increased by over 100 points.

The 10-year Treasury yield rose three basis points to 4.298%. The US dollar jumped against the Canadian dollar and Mexican peso. Meanwhile, international stocks slid on fears of a widening trade war, with European, Japanese, and South Korean indexes falling after Trump's posts.

Mexican President Claudia Sheinbaum Pardo hinted that US tariffs would be met with retaliation, while Canada's Prime Minister Justin Trudeau called for cooperation.

Investors also cheered the news of a cease-fire deal between Israel and Lebanon . The cease-fire will take effect Wednesday morning and bring an end to 14 months of fighting between Israel and Hezbollah.

Meanwhile, US-oriented investors parsed through the latest minutes from the Fed's last policy meeting. Central bank officials shared consensus for "gradually" cutting rates moving forward.

"Many participants highlighted that uncertainties concerning the equilibrium fed funds rate, or the final destination, have complicated the assessment of how restrictive monetary policy should be," wrote Ryan Sweet, chief US economist at Oxford Economics.

The market is awaiting several more data points this week.

Initial jobless claims, a third-quarter GDP revision, and personal consumption expenditures data are scheduled for release Wednesday morning.

Here's where US indexes stood at the 4:00 p.m. closing bell on Tuesday:

Here's what else happened today: