Dow, S&P 500, Nasdaq end in green as Trump softens on China talk
U.S. stocks gainedWednesday as President Donald Trump signaled a softer stance on Chinese tariffs and Federal Reserve Chair Jerome Powell, easing investor concerns that had rattled markets in recent weeks.
The Dow Jones Industrial Average rose 419 points, or 1.07%, while the S&P 500 climbed 1.6%. The tech-heavy Nasdaq outpaced both, jumping 2.5%.
At one point, the Dow had added over 1,100 points before paring gains late in the session.
Markets responded positively after Trump told reporters he had “no intention” of firing Powell, offering reassurance after weeks of critical comments aimed at the Fed chair. Trump also hinted at a possible rollback of the 145% tariffs on Chinese imports, saying they would come down “substantially” but would not be eliminated.
No unilateral offer to China yet
However, Treasury Secretary Scott Bessent tempered market expectations by clarifying that no unilateral offer had been made to deescalate the U.S.-China trade conflict.
Still, Bessent described the possibility of a “big deal” if both sides engage in joint rebalancing efforts.
The easing rhetoric boosted shares of China-exposed tech firms. Apple and Nvidia rose 3% and 4%, respectively, while Tesla gained 5% after Elon Musk said he would reduce time spent on a government efficiency role.
Despite the rebound, economic concerns persist. BCA Research warned of underpriced recession risks, pointing to weakening labor markets and slowing business investment.
Meanwhile, Piper Sandler predicted a short-term truce on tariffs, but not a full rollback.
Investor sentiment remains cautious, with some strategists urging discipline amid potential volatility and conflicting policy signals.
Bitcoin (BTC) gained around 2.5% on the day, currently trading at around $93,700.
