Overview

• President Trump announced that tariffs on Chinese imports, currently at historic highs of 145%, will be significantly reduced but not eliminated, suggesting potential progress in the trade war.
• Trump confirmed he has no intention of firing Federal Reserve Chair Jerome Powell, walking back earlier threats that had rattled markets and raised concerns about central bank independence.
• Major U.S. stock indexes surged, with the S&P 500 up 2.99%, the Nasdaq rising 4%, and the Dow Jones Industrial Average gaining 2.48%, buoyed by renewed investor confidence.
• Tesla shares climbed over 6% following stronger-than-expected core auto profits, contributing to the broader rally led by tech and consumer discretionary stocks.
• Treasury Secretary Scott Bessent expressed optimism about a de-escalation in U.S.-China trade tensions, though he cautioned that negotiations would likely be protracted.