On Tuesday, the Dow Jones Industrial Average ended the session lower after swinging between losses and gains throughout the session.  It fell to 24,370.24 after jumping down by 53.02 points, whereas it rose as high as 368 points at its high of the session. The Nasdaq Composite climbed 0.16 percent and closed at 7,031.83 while the S&P 500 slipped to end the session at 2,636.78.

It came into effect after a report by Bloomberg News that China is set to cut tariffs on the U.S. cars from 40 percent to 15 percent. The U.S. government is waiting for the official documentation and other details regarding the same. However, the U.S. President tweeted that they are having very productive conversations with China and watch out for important announcements.

Shares of General Motors, Fiat Chrysler, and Ford Motor all climbed higher on the board after the news came out. On the other hand, equities traded lower after a fight between Democratic leadership and President Donald Trump over the border security. President Trump intimidated to close down the government if money was not going to allocate for building the wall along the U.S.-Mexico border.

However, Asia stocks traded higher as shares of automakers in Japan, South Korea, and China climb following reports that China would cut off tariffs on cars from 40 percent to 15 percent. In Japan, the Nikkei 225 traded up by 1.72 percent to close at 21,148.02 while the Topix index jumped 1.74 percent to end 6the session at 1,602.7.

In terms of automakers, Yamaha Motors rose 5.32 percent, Toyota jumped 2.02 percent, Mitsubishi Motor surged 3.21 percent, and Nissan went 1.6 percent up. In South Korea, Kia Motors surged 4.6 percent while Hyundai Motor gained 9 percent.

The U.S. dollar index traded at 97.379 and the Japanese yen was at 113.50 against the dollar. On the other hand, the Australian dollar was at $0.7228.