Markets Surge on Hopes of U.S.-China Trade Breakthrough

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Markets Surge on Hopes of U.S.-China Trade Breakthrough

 

U.S. stock markets surged Tuesday, closing with robust gains as fresh signals from the White House hinted at a possible thaw in the ongoing trade war with China. Investors responded swiftly to remarks suggesting the months-long standoff between the two economic giants may soon ease, helping markets rebound from recent volatility.

 

Momentum began early in the trading session, but a notable upswing took hold in the afternoon following reports that Treasury Secretary Scott Bessent, speaking at a private investor meeting in Washington, predicted a "de-escalation" in trade tensions with China. “No one thinks the current status quo is sustainable,” Bessent reportedly told attendees at the JPMorgan Chase-hosted event, according to multiple media outlets.

 

 

While the White House has not officially confirmed the details of Bessent's remarks, press secretary Karoline Leavitt offered a cautiously optimistic tone during a briefing later in the day. “The president and the administration are setting the stage for a deal with China,” Leavitt said. “So we feel everyone involved wants to see a trade deal happen, and the ball is moving in the right direction.” She declined to elaborate directly on Bessent’s comments but confirmed that the administration believes it is “doing very well in respect to a potential trade deal with China.”

 

The upbeat messaging marked a stark contrast from Monday’s gloomy trading session, when markets plunged after President Trump renewed his criticisms of the Federal Reserve. All three major U.S. stock indexes fell by approximately 2.5 percent, reflecting growing investor anxiety over interest rates, trade uncertainty, and weakening global growth. The selloffs also extended to U.S. bonds and the dollar, adding to the financial turbulence.

 

Tuesday's rally helped the markets recoup much of those losses. The Dow Jones Industrial Average leapt by 1,016 points, a gain of 2.66 percent. The NASDAQ, driven by strength in the technology sector, rose 429 points, or 2.71 percent. The S&P 500 also rebounded, climbing 2.5 percent.

 

Adding to the day’s more reassuring tone, President Trump confirmed he has no intention of removing Federal Reserve Chair Jerome Powell, despite ongoing disagreements over monetary policy. That statement, although brief, likely added another layer of stability to investor sentiment, helping temper fears of further political interference with the central bank.

 

The swift turnaround in market performance underscores just how sensitive investors remain to developments in U.S.-China trade talks. With the administration now signaling progress, even subtle shifts in rhetoric appear capable of driving significant market movement. For now, Wall Street is betting on diplomacy prevailing over escalation.

 

Adpated by ASEAN Now from The Hill  2025-04-23

 

 

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Great article! Actually it's a twofer. There's also this: 

 

"Adding to the day’s more reassuring tone, President Trump confirmed he has no intention of removing Federal Reserve Chair Jerome Powell, despite ongoing disagreements over monetary policy."

 

So, after all the insults and vituperation directed against Powell, it turns out that Trump was basically kidding. He didn't mean this when he wrote

 

"Powell’s termination cannot come fast enough!”

https://archive.ph/XvpJF

 

And it has nothing at all to do with the alarm that the markets clearly felt over those comments. Nothing. Absolutely nothing.

[Tug]

I’ll belive it when the ink is dry and trump is no longer in position to mess it up again.obviously he’s trying to squirm out of this last disaster without admitting fault/cause.time to flush the toilet!

[rough diamond]

1 hour ago, placeholder said:

"Adding to the day’s more reassuring tone, President Trump confirmed he has no intention of removing Federal Reserve Chair Jerome Powell, despite ongoing disagreements over monetary policy."

He missed out "Although tomorrow he will probably say the opposite".

[Bkk Brian]

1 hour ago, placeholder said:

Great article! Actually it's a twofer. There's also this: 

 

"Adding to the day’s more reassuring tone, President Trump confirmed he has no intention of removing Federal Reserve Chair Jerome Powell, despite ongoing disagreements over monetary policy."

 

So, after all the insults and vituperation directed against Powell, it turns out that Trump was basically kidding. He didn't mean this when he wrote

 

"Powell’s termination cannot come fast enough!”

https://archive.ph/XvpJF

 

And it has nothing at all to do with the alarm that the markets clearly felt over those comments. Nothing. Absolutely nothing.

Yes it is. Always good to see positive news. It feels like some people want China to triumph just because of their hatred to Trump.

 

"Tuesday's rally helped the markets recoup much of those losses. The Dow Jones Industrial Average leapt by 1,016 points, a gain of 2.66 percent. The NASDAQ, driven by strength in the technology sector, rose 429 points, or 2.71 percent. The S&P 500 also rebounded, climbing 2.5 percent."

 

Its just a case of fingers crossed that a deal will be done.

 

 

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18 minutes ago, Bkk Brian said:

Yes it is. Always good to see positive news. It feels like some people want China to triumph just because of their hatred to Trump.

 

"Tuesday's rally helped the markets recoup much of those losses. The Dow Jones Industrial Average leapt by 1,016 points, a gain of 2.66 percent. The NASDAQ, driven by strength in the technology sector, rose 429 points, or 2.71 percent. The S&P 500 also rebounded, climbing 2.5 percent."

 

Its just a case of fingers crossed that a deal will be done.

Yes, it is always good to see positive news