U.S. Stocks Extend Gains as Trump Softens Stance on Fed and China, Raising Hopes for Trade De-escalation
U.S. Stocks Extend Gains as Trump Softens Stance on Fed and China, Raising Hopes for Trade De-escalation
Washington, April 24, 2025 — U.S. stock markets surged for a second consecutive day as President Donald Trump appeared to back down from his confrontational rhetoric. Trump said he had “no intention” of firing Federal Reserve Chair Jerome Powell and hinted at the possibility of easing tariffs on China—two key signals that helped lift investor confidence.
📊 Major Indexes Rally
- Dow Jones closed up over 420 points, or more than 1%, after gaining more than 1,000 points earlier in the session.
- S&P 500 rose over 1.5%.
- Nasdaq jumped 2.5%.
The rebound came after a week of market turbulence, driven by Trump’s harsh criticism of Powell and calls for his removal, sparking concerns over the Fed's independence.
🗣️ Trump Softens Tone, Treasury Sends Positive Signals
On Tuesday, Trump reassured markets by stating he has “no intention” of firing Powell. Meanwhile, Treasury Secretary Scott Bessent added to the optimism, saying the U.S. may ease trade tensions with China and “a big deal is possible” during remarks at the IMF and World Bank Spring Meetings.
Bessent also urged China to shift away from export reliance and boost domestic consumption to help achieve trade balance. “If China wants to rebalance, we can do it together,” he said.
📉 Lingering Market Uncertainty
Despite the positive tone, concerns remain. Investors continue to monitor the fragile relationship between Trump and Powell closely, especially as Trump keeps pressuring the Fed to cut interest rates—even as his own tariffs risk pushing inflation higher.
Currently, U.S. tariffs on Chinese imports remain elevated at 145%, with additional duties on goods from other countries still in place. Analysts warn these policies could hurt foreign investor sentiment and contribute to a reshaping of the global economic order.
💬 "America First" ≠ "America Alone"
Bessent clarified, “America First does not mean America Alone.” He emphasized that the U.S. remains committed to leadership in global institutions like the IMF and World Bank, but urged these organizations to “return to their core missions,” including supporting low-cost energy in developing nations through nuclear and fossil fuel projects.
🧠 Bottom Line:
While Trump and Bessent’s statements provided temporary relief to markets, policy uncertainty in the U.S. remains a key risk. Investors around the world are closely watching the White House and the Fed for clear signals amid ongoing economic fragility and trade-related pressures.