04:27 PM EST, 02/04/2025 (MT Newswires) -- US benchmark equity indexes closed higher Tuesday, shrugging off trade concerns, despite China announced a series of retaliatory tariffs against the US.

The Nasdaq Composite rose 1.4% to 19,654, while the S&P 500 advanced 0.7% to 6,037.9. The Dow Jones Industrial Average added 0.3% to 44,556. Energy led the gainers among sectors, up 2.2%, while utilities saw the biggest drop.

China will impose additional tariffs of 15% on coal and liquefied natural gas imports from the US and 10% higher duties on items including American crude oil and agricultural machinery, effective Feb. 10, China's finance ministry said Tuesday.

The Trump administration recently announced 25% tariffs on goods from both Canada and Mexico, along with a 10% levy on imports from China. However, US President Donald Trump on Monday paused the announced tariffs on Mexico and Canada for a month.

"Despite the back and forth, risks to the market, and threat to international relationships, the Trump administration continues to tout the importance of tariffs as a carrot and a stick to ensure international cooperation at the border, as well as securing fair trade deals," Stifel said in a Tuesday note. "That being said, tariffs are not without costs and most of the price increase will land on the end user."

The US two-year yield fell 4.9 basis points to 4.22%, while the 10-year rate dropped three basis points to 4.51%.

In company news, Palantir Technologies ( PLTR ) shares jumped nearly 24%, the top gainer on the S&P 500 and the Nasdaq. The software maker late Monday logged Q4 results that topped analysts' estimates amid rising demand for artificial intelligence capabilities.

Spotify Technology's ( SPOT ) US-listed shares surged 13% Tuesday as the audio streaming company issued an upbeat revenue outlook for Q1 after closing out its first full year of profitability.

PayPal ( PYPL ) offered a strong bottom-line outlook as Q4 earnings unexpectedly rose, though its Q1 revenue guidance implied a sequential deceleration. The payments processor's shares sank 13%, the worst Nasdaq performer, and the second-steepest decline on the S&P 500.

PepsiCo's ( PEP ) Q4 earnings came in ahead of Wall Street's estimates, while revenue posted a surprise decline amid weakness in the beverage and snacks company's North American businesses. Its shares fell 4.5%, the second-biggest drop on the Nasdaq.

West Texas Intermediate crude oil declined 0.8% to $72.60 a barrel Tuesday.

In economic news, US job openings decreased to 7.6 million as of the last day of December from November's upwardly revised 8.16 million print, according to the Bureau of Labor Statistics' job openings and labor turnover survey. The consensus was for an 8 million level in a survey compiled by Bloomberg.

Gold rose 0.6% to $2,874.40 per troy ounce, while silver added 1.2% to $32.90 per ounce.