NEW YORK (Reuters) – U.S. stocks rose more than 2% on Tuesday as hopes that the Trump administration could move to ease coronavirus-induced lockdowns overshadowed worrying quarterly earnings reports from JPMorgan and Wells Fargo.

White House adviser Larry Kudlow said President Donald Trump would make a number of announcements about re-opening the U.S. economy in the next day or two as the health crisis appeared to be ebbing, but some state governors have said the decision to re-start businesses lies with them.

New York’s total hospitalizations fell for the first time since the onset of the novel coronavirus pandemic, Governor Andrew Cuomo said.

“The market is going up on prospects of the economy reopening soon and also the coronavirus (possibly) reaching some sort of peak,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

But, he said, the market could be in store for further sharp selling in the coming months as data showing the extent of the economic damage from virus is released. “We’re going to see (macroeconomic) numbers that are going to be frightening, and that will weigh.”

U.S. stock markets have recovered in the past month after slumping more than 30% from their February record highs, supported by a raft of monetary and fiscal stimulus and early signs of a plateau in the number of coronavirus cases.

However, the S&P 500 is still off about $4.7 trillion in market value and analysts have warned of a torrid earnings season as the containment measures ground business activity to a halt.

JPMorgan Chase & Co (JPM.N) and Wells Fargo & Co (WFC.N) reversed early gains to trade lower by the afternoon. First-quarter profits plunged, with both banks setting aside billions of dollars to cover potential loan-losses from the pandemic.

Johnson & Johnson (JNJ.N) rose as it reported better-than-expected quarterly earnings and boosted its dividend, signaling financial stability at a time when a slate of blue-chip firms have suspended dividends to shore up cash reserves.

The Dow Jones Industrial Average .DJI rose 511.8 points, or 2.19%, to 23,902.57, the S&P 500 .SPX gained 80.25 points, or 2.91%, to 2,841.88 and the Nasdaq Composite .IXIC added 316.78 points, or 3.87%, to 8,509.21.

A jump for Apple Inc (AAPL.O) helped to put the Nasdaq on course for a fourth straight day of gains as data showed iPhone shipments to China rebounded slightly in March after crashing in February.

FILE PHOTO: The “Fearless Girl” sculpture is seen outside The New York Stock Exchange (NYSE) building in New York City, New York, U.S., June 4, 2019. REUTERS/Mike Segar

Tesla Inc (TSLA.O) surged more than 10% and was among the top boosts to the Nasdaq after brokerage Credit Suisse upgraded the electric car maker’s stock to “neutral.”

Advancing issues outnumbered declining ones on the NYSE by a 2.83-to-1 ratio; on Nasdaq, a 2.32-to-1 ratio favored advancers.

The S&P 500 posted 8 new 52-week highs and no new lows; the Nasdaq Composite recorded 24 new highs and 10 new lows.

Additional reporting by Medha Singh and Akanksha Rana in Bengaluru; Editing by Sagarika Jaisinghani, Shounak Dasgupta and Dan Grebler

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