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U.S. and global stock markets experienced a significant rally on Wednesday, April 23, 2025, after President Donald Trump softened his stance on trade policies and the Federal Reserve. The S&P 500 rose by 1.9%, the Dow Jones Industrial Average increased by 539 points (1.4%), and the Nasdaq Composite surged by 2.8%.
The market's upswing followed Trump's comments late Tuesday, where he indicated no intention to dismiss Federal Reserve Chairman Jerome Powell, despite previous criticisms. Additionally, Trump suggested that tariffs on Chinese imports, currently at 145%, could be reduced substantially, signaling a potential de-escalation in the ongoing trade tensions.
These developments alleviated investor concerns about economic stability and central bank independence, leading to increased confidence in the financial markets. Big tech stocks, particularly those in the artificial intelligence sector, led the surge. Nvidia gained 5%, while Vertiv Holdings, Super Micro Computer, and Palantir Technologies posted even higher increases. Tesla also climbed 6.7% despite reporting a profit drop, as CEO Elon Musk announced a renewed focus on company operations.
Bond yields fell, indicating renewed investor confidence in U.S. financial markets. However, a recent S&P Global survey showed a decline in U.S. business activity and increased costs due to tariff concerns. Analysts expect continued market volatility, driven largely by Trump's unpredictable policy signals.
International markets mirrored the positive sentiment, with significant gains across Europe and Asia. France's CAC 40 rose by 2.1%, Hong Kong's Hang Seng increased by 2.4%, and Japan's Nikkei 225 advanced by 1.9%. The Shanghai Composite was an exception, dipping slightly by 0.1%.
While the rally reflects optimism, experts caution that sustainable stabilization will require concrete trade agreements and consistent policy signals. The International Monetary Fund has forecasted a global growth slowdown to 2.8% for 2025, the weakest since the COVID-19 pandemic.
