The three major averages in the US were up nearly 0.3% on Tuesday, as investors weighed trade war developments against rising hopes for a temporary pause in auto tariffs.

President Trump said on Monday he is considering temporary exemptions on tariffs for imported vehicles and auto parts, aiming to give manufacturers more time to ramp up US-based production.

At the same time, the Commerce Department announced a new investigation into the national security implications of semiconductor and pharmaceutical imports, a move seen as laying the groundwork for fresh tariffs in those sectors.

In addition, investors are also closely watching earnings reports. Bank of America gained about 4% after an earnings and revenue beat and Citigroup went up 1.4% after reporting a jump in profit. J&J on the other hand, was down 0.3% although the company's earnings topped estimates. Boeing lost about 2% following reports that China has instructed its airlines to suspend deliveries of Boeing aircraft.

Source: Trading Economics