Calm returned to Wall Street Tuesday, and tech stocks led U.S. indexes higher following a strong profit report from Palantir Technologies, a darling benefiting from the artificial-intelligence boom.

The S&P 500 rose 0.7% a day after swinging sharply on worries that President Donald Trump’s tariffs could spark a trade war that would hurt economies around the world, including the United States.

The Dow Jones industrial average added 134 points, or 0.3%, and the Nasdaq composite climbed 1.4%.

Trump on Monday agreed to delay his taxes on U.S. imports of Canadian and Mexican products for a month, with the announcement on Canada coming after trading closed for the day.

But a trade war is still possible, and some analysts say more swings may be coming because Trump’s threats should be taken both seriously and literally.

Trump is pressing ahead with a 10% tax on U.S. companies importing things from China. And China retaliated on Tuesday by announcing its own tariffs on some U.S. products and an antitrust investigation into Google.

The stock price of Google’s parent company, Alphabet, rose 2.5% even with China’s antitrust investigation. The company released its latest earnings report after trading ended for the day.

Elsewhere on Wall Street, stocks that had swung sharply a day before when worries were high about tariffs on Mexico and Canada were calmer.

Auto makers had dropped because so much of their production occurs in Mexico, for example. But General Motors rose 1.4%, and Ford Motor climbed 2.7%.

Palantir Technologies jumped 24% and was one of the strongest forces lifting the S&P 500 after reporting a better profit for the latest quarter than analysts expected.

Pharmaceutical giant Merck tumbled 9.1% despite beating sales and profit forecasts for the latest quarter.

All told, the S&P 500 rose 43.31 points to 6,037.88. The Dow added 134.13 to 44,556.04, and the Nasdaq composite gained 262.06 to 19,654.02.

In the bond market, Treasury yields eased after a report indicated the U.S. job market may be adding less upward pressure on inflation.

The yield on the 10-year Treasury fell to 4.51% from 4.56% late Monday. The two-year yield, which moves more closely with expectations for what the Federal Reserve will do with short-term interest rates, eased to 4.21% from 4.25%

— Associated Press