Wall Street Soars as Trump Eases Up on China and Powell

Hold onto your hats, folks! U.S. stocks skyrocketed Wednesday after President Trump threw investors a lifeline, hinting at a softer approach on those killer Chinese tariffs and backing off from Fed Chair Jerome Powell. The market, which had been on a wild rollercoaster ride, finally caught a break.

The Dow Jones Industrial Average shot up a whopping 419 points, a sweet 1.07% gain. The S&P 500 wasn't far behind, climbing 1.6%. But the tech-heavy Nasdaq? It left them in the dust, soaring 2.5% like a rocket!

At one point, the Dow was up over 1,100 points, but it cooled off a bit before the session ended. Still, not too shabby!

What sparked this rally? Trump told reporters he had "no intention" of firing Powell, calming nerves after weeks of slamming the Fed chief. And get this: he teased a major rollback of the brutal 145% tariffs on Chinese goods, saying they'd come down "substantially" (but don't get too excited, they're not going away completely).

No unilateral offer to China yet

Before you start celebrating, Treasury Secretary Scott Bessent threw some cold water on the party. He made it clear that no one-sided offer had been made to ease the U.S.-China trade war. Bummer.

But wait, there's hope! Bessent dangled the possibility of a "big deal" if both sides work together to rebalance things.

Tech stocks with a China connection were the big winners. Apple and Nvidia popped 3% and 4%, while Tesla zoomed 5% after Elon Musk said he'd spend less time on that pesky government gig.

Don't get too comfy, though. BCA Research is waving a red flag about underpriced recession risks, pointing to a softening job market and slowing business spending. Yikes.

Piper Sandler thinks we might get a short-term breather on tariffs, but don't hold your breath for a total rollback.

Investors are still on edge, with some strategists preaching caution amidst the market's wild swings and mixed policy vibes.

And hey, crypto fans, Bitcoin (BTC) joined the party too, gaining around 2.5% and now hanging out at about $93,700.