April 23 - U.S. stocks sharply surged on Wednesday morning as markets cheered signals from President Donald Trump suggesting a possible cooling of tensions with China and support for Federal Reserve Chair Jerome Powell.
The Dow Jones Industrial Average soared 1,044 points, or about 3%, while the S&P 500 climbed 3%. The tech-heavy Nasdaq Composite rallied more than 4% in broad-based gains.
In comments Tuesday, Trump said the current 145% tariff on Chinese imports is “very high” but suggested a substantial reduction could follow if progress is made in trade talks. “It won't be anywhere near that high,” he said, though he ruled out removing tariffs altogether.
A White House official told The Wall Street Journal the administration is weighing a cut to tariffs between 50% and 65%, helping to boost market sentiment. The official later clarified to CNBC that reductions would need to be mutual, requiring reciprocal steps from Beijing.
Tech leaders with strong ties to China were among the top gainers. Apple (AAPL) advanced 3%, while Nvidia (NVDA) rose 5%. Tesla (TSLA) also gained 5% after CEO Elon Musk said his government role will take up less time moving forward.
Markets also responded positively after Trump said he has “no intention” of firing Powell, despite criticizing him earlier this week. Powell's term is set to expire in May 2026.
