Key moments
- US equities closed Tuesday’s trading session with gains, with major indices climbing by more than 2.5%.
- Market momentum persisted into Wednesday, as stock futures enjoyed a jump of over 1%.
- Investor confidence was boosted by reports of easing trade tensions and Trump’s assurance that Reserve Chair Powell’s position was secure.
Stocks Climb as Trump Pledges to Keep Powell
Wall Street roared on Tuesday, with the Dow Jones Industrial Average skyrocketing by 1,016 points (2.66%) to close at 39,186.98, marking its best performance in weeks. The S&P 500 followed suit, climbing 2.51% to 5,287.77, while the Nasdaq Composite and Nasdaq 100 each gained more than 400 basis points.
The rally was fueled by growing confidence that the US and China could soon ease trade tensions. According to a Bloomberg report, Treasury Secretary Scott Bessent has told investors that the ongoing tariff battle was “unsustainable” and that he expects the conflict will subside. Although discussions regarding a de-escalation have not started for now, his remarks provided much-needed relief to markets rattled by months of trade uncertainty.
Additional optimism came from Vice President JD Vance, who signaled progress in trade discussions with India after meeting with Prime Minister Narendra Modi. Furthermore, President Trump hinted that the 145% tariffs on Chinese goods, previously seen as a major point of contention, could be reduced. He said that the final duties will not be as high, stressing that they “will come down substantially.”
Tuesday’s rebound was broad-based, with tech giants leading the charge after a steep sell-off the previous day. Apple, Amazon, and Meta stocks all gained more than 3%. Nvidia and Microsoft posted strong gains. Blue-chip stocks also surged, with GE Aerospace climbing 6%. Equifax (EFX) led S&P 500 advancers with a 14% jump.
Market momentum continued into Wednesday as US stock futures climbed following Trump’s latest statement regarding Fed Chair Powell. Namely, the president reassured that he would not fire Powell and that he simply wanted the Federal Reserve chief to “be a little more active in lowering rates.”
The positive effects of this development were immediately visible in the futures market. Dow e-minis surged by 1.22%, reaching 39,839, while S&P 500 e-mini futures also climbed, rising by 1.64% to 5,402. The Nasdaq 100 e-mini futures witnessed the most substantial gains, jumping nearly 2% to 18,741. Beyond the Fed’s leadership, Trump’s recent comments on tariffs continued to affect markets.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
