Global Stock Indexes Jump as Trump Says No Plans to Fire Powell

KEY TAKEAWAYS

Global stock indexes are jumping after President Donald Trump said he has ”
no intention
” of firing Federal Reserve Chair Jerome Powell and plans to be “very nice” to China.

Trump’s comments, made in separate briefings, eased investor concerns about the central bank’s independence and also raised hopes of a cooling of trade tensions between the U.S. and China. Trump has imposed import taxes of 145% on China, which has
retaliated
with 125% tariffs on U.S. goods.

Trump said he intends to be “very nice” to China in trade negotiations, according to reports. He noted, however, that tariffs “will come down substantially but it won’t be zero,”

Bloomberg

reported. Trump’s comments follow ones from Treasury Secretary Scott Bessent that the U.S.-China tariff war is ”
unsustainable
” and likely would “de-escalate.”

U.S. stock futures are pointing up on hopes of a cooling of trade tension after major indexes closed
sharply higher
Tuesday.
Dow Jones Industrial Average
futures are advancing 1.6%,
S&P 500
futures are gaining 2.1%, and
Nasdaq
futures are rising 2.5%.

The Stoxx Europe 600 index is up 1.7%, while Hong Kong’s Hang Seng Index and Japan’s Nikkei ended up 2.4% and 1.9%, respectively.
Safe-haven
gold futures are pulling back, and the 10-year Treasury yield is falling to 4.34%.

“The more conciliatory tone from the White House on trade talks is in line with our view that a worst-case scenario on tariffs can be avoided,” UBS Global Wealth Management Chief Investment Officer Mark Haefele said in a note Wednesday. Haefele added that “the stabilization in markets may also reflect that the ongoing first quarter earnings season is not turning out to be as bad as feared, even though the percentage of companies beating sales and earnings estimates has so far been below historical averages.”

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