U.S. stocks rallied in early trading on Wednesday, one day after President Donald Trump said tariffs on China would “come down substantially.”
Trump also appeared to soften previous attacks on the Federal Reserve, saying late Tuesday he has “no intention” of firing top central banker Jerome Powell.
In public remarks on Wednesday, Treasury Secretary Scott Bessent said the U.S. is willing to negotiate with China, which sent markets higher. The comments from Bessent affirmed a shift toward de-escalation he reportedly shared at a private JPMorgan event a day earlier. Bloomberg News first reported those remarks.
“There is an opportunity for a big deal here,” Bessent told an audience at the Institute of International Finance in Washington, D.C, on Wednesday. “If they want to rebalance, let’s do it together.”
The Dow Jones Industrial Average jumped 1,100 points, or 2.8%, while the S&P 500 climbed 3.3%. The tech-heavy Nasdaq soared 4.3%.
Shares of electric carmaker Tesla surged 7% in the first trading since CEO Elon Musk said his time devoted to the Department of Government Efficiency would “drop significantly” next month, paving the way for his return to the company. Still, Tesla shares have fallen by nearly half since a December peak.
Musk described his work at DOGE as necessary, but he said that “working for the government to get the financial house in order is mostly done.”
The uptick also took hold at the other so-called “Magnificent Seven” tech giants, which drove much of the gains in the S&P 500 over recent years.
Facebook parent Meta climbed 6%, while chipmaker Nvidia increased 5%.
President Donald Trump delivers remarks during the swearing-in ceremony for Securities and Exchange Commission Chairman Paul Atkins in the Oval Office at the White House on April 22, 2025 in Washington, DC.
Saul Loeb/AFP via Getty Images
Earlier this month, Trump hiked tariffs on Chinese goods to a total of 145%, prompting China to respond with 125% levies on U.S. products.
The tit-for-tat measures escalated a trade war between the world’s two largest economies, but the White House this week appeared to signal a desire to ease the tensions.
“145% is very high and it won’t be that high,” Trump told reporters at the White House late Tuesday. “It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.”