U.S. stock indices are up sharply after U.S. President Donald Trump said he doesn’t plan to fire Federal Reserve Chairman Jerome Powell as head of America’s central bank.
The blue-chip Dow Jones Industrial Average is up more than 700 points, while the benchmark S&P 500 index is up 2.5% and the technology-laden Nasdaq Composite index is up nearly 3%.
Markets are also getting a boost as President Trump and members of his administration signal that tariffs placed on Chinese imports may go down from their current level of 145%.
Regarding Fed Chair Powell, Trump said that he has “no intention” of firing the central bank governor whose current term ends in May 2026.
The comment is a reversal after the president called Powell a “major loser” on social media and demanded that interest rates be lowered immediately.
Trump also said he’s willing to take a less confrontational approach to trade talks with China, noting that the current 145% tariff on Chinese imports is “very high.”
Hopes for lower tariffs have stocks with heavy exposure to China rallying, including Apple (AAPL) and Nvidia (NVDA), which are up 3% and 6% respectively.
The latest rally in U.S. equities comes a day after stocks surged more than 1,000 points to end a four-day losing streak. Both the S&P 500 and Nasdaq Composite gained more than 2%.
Despite the current rebound in stocks, many investors continue to flock to safe-haven assets such as gold. The precious metal’s price is up 8% in April and hit all-time high of $3,509.90 U.S. per ounce on April 22.