Wall Street Soars Nearly 3% After Trump Eases Fed, Tariff Concerns/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks surged nearly 3% Wednesday in a global market rally. Trump’s Fed and tariff remarks boosted investor confidence. Markets remain volatile but gained on easing economic fears.
Wall Street Rally: Markets Jump on Fed Stability and Trade Optimism — Quick Looks
- S&P 500 Rises 2.9%: Early trading on Wednesday saw the index bounce strongly.
- Dow Soars 967 Points: The index continues to rebound after Monday’s steep drop.
- Nasdaq Up 3.7%: Tech-heavy gains push index higher as global optimism returns.
- Trump Calms Fed Fears: President says he won’t fire Jerome Powell after prior criticism.
- Tariff Relief Hinted: Trump signals China tariffs may fall from 145%, easing trade tensions.
- Tesla Gains 4.7%: Musk says he’ll focus more on Tesla after backlash over political role.
- Global Markets Follow Suit: France (+2.2%), Hong Kong (+2.4%), and Japan (+1.9%) climb.
- Bond Yields Fall: 10-year Treasury yield dips to 4.27%, calming bond market concerns.
Deep Look: Wall Street Leaps as Trump Reassures Markets on Fed and Tariffs
NEW YORK — April 23, 2025 — Wall Street roared back Wednesday with its biggest surge in weeks, as investors welcomed comments from President Donald Trump that eased fears around interest rates and trade policy.
The S&P 500 jumped 2.9%, the Dow Jones Industrial Average surged 967 points (2.5%), and the Nasdaq composite soared 3.7% by mid-morning — a sharp reversal after recent volatility spurred by uncertainty over the president’s economic strategy.
The rally followed strong global gains, with markets in Europe and Asia posting similar leaps.
Trump Calms Markets Over Fed Independence
The biggest catalyst for Wednesday’s rally came late Tuesday when Trump stated he had “no intention” of firing Federal Reserve Chair Jerome Powell, despite previously calling him “a major loser” over resistance to cutting interest rates.
The remark alleviated fears of political interference in the Fed, which spooked investors earlier this month and contributed to wild market swings.
“Markets are breathing easier,” said Tim Waterer, chief analyst at KCM Trade. “The president’s tone shift brought some much-needed stability — at least for now.”
While Trump has clashed with Powell over interest rate policy, legal experts largely agree he cannot remove Powell from the Fed’s board, though whether he could strip him of the chairmanship remains uncertain.
“By backing off Powell, Trump may be aiming to preserve a scapegoat if the economy dips,” noted strategist Thierry Wizman of Macquarie.
Trump Signals Possible Tariff Rollback
Further boosting markets, Trump signaled that U.S. tariffs on Chinese imports could be reduced “substantially” from the current 145% rate.
“It won’t be that high,” Trump said, hinting at a softer tone ahead of ongoing trade negotiations.
Wall Street has long hoped Trump would use the high tariffs as leverage — then roll them back in exchange for favorable trade deals. If done swiftly enough, many believe this could stave off a recession.
Bond Market Eases
Reassurance from Trump on both Powell and trade also helped soothe bond markets, which had been showing signs of investor unease.
The yield on the 10-year Treasury note fell to 4.27% from 4.41%, marking a notable retreat. Lower yields signal investor confidence in U.S. debt and can also lead to lower borrowing costs across the economy.
Tesla, Tech, and Global Boosts
Among standout stock gainers was Tesla, which rose 4.7% after CEO Elon Musk pledged to spend less time on politics and more on the company amid criticism over his influence in the federal government.
Tesla had reported a significant drop in quarterly profits on Tuesday, but Musk’s refocus helped ease investor concerns.
Tech stocks helped power the Nasdaq’s 3.7% gain, with investors piling into growth names following the week’s volatility.
Globally, investor enthusiasm was just as strong.
- France’s CAC 40 climbed 2.2%
- Hong Kong’s Hang Seng jumped 2.4%
- Japan’s Nikkei rose 1.9%
- The Shanghai Composite edged down 0.1%, the lone major exception.
Still Volatile Ahead
Despite the strong day, the S&P 500 remains down over 11% from its recent peak, following a rollercoaster of moves tied to Trump’s economic maneuvers.
Analysts expect this volatility to persist, with headlines about tariffs, inflation, and central bank independence continuing to swing markets.
“This is a trader’s market now — unpredictable and headline-driven,” said Waterer. “We’ll likely see more big swings both up and down before things stabilize.”
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