U.S. stocks Rally as Trump Softens Stance on China Tariffs and Fed
U.S. stocks soared on Wednesday as president Donald Trump hinted at a softer approach on Chinese tariffs and Federal Reserve Chair Jerome Powell. The Dow Jones industrial Average climbed 419 points,or 1.07%, while the S&P 500 rose 1.6%. The tech-heavy Nasdaq led the pack with a 2.5% jump.
Trump reassured markets by stating he had “no intention” of firing Powell, calming fears after weeks of criticism. He also suggested a potential reduction in the 145% tariffs on Chinese imports, though not a complete removal.
Though, Treasury Secretary Scott Bessent clarified that no unilateral offer had been made to China. He did mention the possibility of a “big deal” if both sides work together.
China-exposed tech stocks benefited from the easing rhetoric. Apple and Nvidia rose 3% and 4%, respectively, while Tesla gained 5%.
Despite the rally, economic concerns linger. BCA Research warned of underpriced recession risks, citing weakening labor markets and slowing business investment. Piper Sandler predicted a short-term truce on tariffs but not a full rollback.
Investor sentiment remains cautious. Some strategists advise discipline amid potential volatility and conflicting policy signals. Bitcoin (BTC) also gained around 2.5%, trading at about $93,700.
