US Stock Market Live: US stocks rose on Wednesday as investors hoped US-China trade tensions would ease. Trump stated his intention not to fire Fed Chair Jerome Powell and expressed willingness to reduce tariffs on Chinese imports.
The Dow Jones Industrial Average rose 534 points, or 1.4%. The S&P 500 climbed 1.8%, and the Nasdaq Composite rallied 2.7%.
Trump said he’s willing to take a less confrontational approach to trade talks with China, noting that the current 145% tariff on Chinese imports is “very high” and will be reduced substantially but not to zero.
Treasury Secretary Scott Bessent said both countries have the chance to make a significant deal on trade. He suggested they collaborate to rebalance.
Stocks with higher exposure to China that had recently fallen rallied, including Apple and Nvidia, which rose 3% and 4%, respectively. Tesla shares also surged 5% due to easing tariff pressures and CEO Elon Musk’s announcement that his time at the Trump Department of Government Efficiency will decrease significantly next month.
Investors breathed a sigh of relief as Trump stated his intention not to fire Fed Chair Jerome Powell, reversing his recent criticism and demands for lower interest rates. Stocks ended the day on a winning note, with the Dow surging over 1,000 points to end a four-day losing streak, while the S&P 500 and Nasdaq Composite both rose more than 2%.