- DJIA soars 1.8%, surpassing 39,800, following Trump’s statement affirming Powell’s position.
- According to the Wall Street Journal, the US is contemplating tariff reductions on Chinese goods to de-escalate trade friction.
- Treasury official Bessent clarifies no solo offer, but both countries acknowledge the necessity for reciprocal easing.
- Apple and Nvidia experience significant gains of 3% and 5% respectively, driven by improved US-China outlook.
The Dow Jones Industrial Average (DJIA) surged by more than 490 points, approximately 1.30%, on Wednesday, fueled by investor optimism regarding a potential easing of the US-China trade dispute and President Trump’s declaration that he has no intention of dismissing Federal Reserve (Fed) Chairman Jerome Powell. Currently, the DJIA is holding above 39,800, recovering from a daily low of 39,544.
Hopes for reduced US-China trade tensions ignite tech sector rally; Apple and Nvidia spearhead advances, Gold declines despite yield decreases
On Tuesday, President Trump indicated that tariffs imposed on China would be less than 145%, while also suggesting a potential for further reductions, stating, “it’ll come down substantially, but it won’t be zero.” The Wall Street Journal’s report suggesting that the US government is evaluating tariff cuts on Chinese imports to alleviate strained relations between the two nations boosted investor risk appetite.
US Treasury Secretary Scott Bessent clarified that there has been “No unilateral offer from Trump to cut China tariffs,” while emphasizing that a de-escalation of the trade conflict is essential for continued negotiations.
