U.S. stocks rebounded on Tuesday as a spate of quarterly earnings reports and hints at the de-escalation of U.S.-China trade tensions brought buyers in from the sidelines.

Tesla's first-quarter results fell short of Wall Street's expectations, with revenue down 9% from a year ago. Revenue hit $19.34 billion in the first three months of the year. Operating income was down 66% year-over-year at $399 million.

Tesla is set to report its first-quarter earnings on Tuesday, and Wall Street is bracing for more pain. The electric vehicle maker's stock is down 44% year-to-date as investors grapple with numerous worries,