Stocks Surge as Trump Eases Up on China: Tariffs Slashed to 145%

Listen up, folks! Stocks skyrocketed on Wednesday when Trump decided to chill out on China, dropping the bomb that he's slashing the 145% tariff on all goods. Can you believe it?

Traders are breathing a sigh of relief thanks to Trump's latest mellow vibes. On April 23, the Dow Jones Industrial Average soared 1.47%, hitting 39,774, although it didn't quite reach the daily peak above 40,000. Meanwhile, the S&P 500 jumped 2.14% to 5,400.74, and the tech-heavy Nasdaq blasted off 3.09% to 16,803.75. It's a wild ride out there!

Trump Tones Down Talk on China and the FED

The big stock indices went wild over Trump's softer stance on trade. He dropped the news that the sky-high tariffs on China are going down "substantially" from 145%. And get this, he promised to play nice with China's Xi Jinping, no more hardball.

"It will come down substantially, but it won't be zero," Trump declared.

But wait, there's more! Trump's chill pill extended to Federal Reserve Chair Jerome Powell. He made it clear he's not firing the Fed chair, whose term ends in 2026. This news gave the U.S. dollar a much-needed boost, with the dollar index up 0.73% at 99.66, bouncing back from recent multi-year lows.

These comments are part of a bigger picture, with the White House trying to calm the markets. Both Trump and his crew are saying trade talks with major partners are going smoothly. It's crucial, too, with a 90-day deadline looming when the highest rates could kick back in.

But don't get too comfy. Trump's still holding firm on the baseline 10% tariff on all countries, a big jump from where it used to be. And the White House isn't backing down, claiming that other countries are using sneaky non-tariff tricks to mess with trade balances with the U.S.