US Stocks Rise as Trump Softens Stance on Powell, Hints at China Trade Deal

Edited by: Olga Sukhina

U.S. stocks experienced gains on Wednesday after President Trump signaled a potential de-escalation in U.S.-China trade tensions and walked back on previous suggestions of firing Federal Reserve Chair Jerome Powell. The Dow Jones Industrial Average notably rose 1.9%, continuing a positive trend from the previous day's 1,016.57-point surge.

The S&P 500 and Nasdaq also saw increases, climbing by 2.5% and 3.5%, respectively, by 9:30 a.m. ET. Trump clarified that he has "no intention" of firing Powell, whose term is set to expire in May 2026. This statement comes after earlier remarks where Trump expressed frustration with the Fed's interest rate policies.

Adding to the positive market sentiment, Trump hinted at the possibility of lower import taxes on goods from China, suggesting that the current 145% rate would be significantly reduced in a potential trade deal. Major tech stocks, referred to as the "Magnificent 7" – including Apple, Nvidia, Alphabet, Amazon, Meta, Microsoft, and Tesla – saw premarket gains. However, the claim about Elon Musk's time running DOGE dropping significantly next month appears to be inaccurate and has been removed. White House officials have also indicated a possible easing of trade tensions between the U.S. and China.

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