Wall Street soared as optimism grew over a potential breakthrough in the U.S.-China trade war, with Donald Trump reportedly considering a significant reduction in tariffs on Chinese goods.
The S&P 500 jumped more than 3% at the opening bell, while the Dow Jones rose 2.5% and the tech-heavy Nasdaq rallied 3.8%.
The gains followed a report by The Wall Street Journal stating that Trump may cut tariffs on Chinese imports by more than half in some instances. Currently, U.S. tariffs on Chinese goods stand at 145%, with Beijing responding with 125% levies on American exports.
On Tuesday night, Trump said his administration’s tariffs on China would be reduced “substantially. ” This echoed earlier comments by Treasury Secretary Scott Bessent, who noted that the high tariffs were “unsustainable” and predicted a “de-escalation” in the trade conflict between the world’s two largest economies.
Markets have been unsettled since Trump first imposed the tariffs earlier this month. They also found relief in the President’s reassurance that he has “no intention” of removing Federal Reserve Chair Jay Powell. The statement marked a retreat from previous tensions between Trump and the Fed, sparked by Powell’s resistance to lowering interest rates.
Investors are now closely watching for further remarks from Secretary Bessent, who is scheduled to speak at the IIF Global Outlook Forum in Washington later today.
