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Stocks rallied Tuesday on hopes that U.S.-China trade tensions could ease soon, as investors recovered from the steep declines suffered in the previous session.
The Dow Jones Industrials rocketed 1,016.57 points, or 2.7%, to 39,186.98.
The S&P index climbed 129.56 points, or 2.5%, to 5,287.76
The NASDAQ Composite spiked 429.52 points, or 2.7%, to 16,300.42.
The major averages spiked on news that Treasury Secretary Scott Bessent told a group of investors Tuesday that there “will be a de-escalation” in the trade war with China. “No one thinks the current status quo is sustainable,” he said during a meeting with investors hosted by JPMorgan Chase.
Tuesday’s action comes on the heels of a sharp selloff. The Dow dropped more than 970 points in the regular session, while the S&P 500 and NASDAQ both slid more than 2%.
Investors grew increasingly uncertain after Trump posted on Truth Social that the economy would slow if the Fed did not cut interest rates. In the latest of multiple recent posts calling out Powell by name, he called the Fed chief “Mr. Too Late” and a “major loser.”
Trump hinted at Powell’s “termination” last week, an unprecedented action that White House economic advisor Kevin Hassett said the president’s team was currently studying. Powell has said he cannot be fired under law and intends to serve through the end of his term in May 2026.
Prices for the 10-year Treasury regained strength Tuesday, lowering yields to 4.40% from Monday’s 4.41%. Treasury prices and yields in
opposite directions.
Oil prices jumped $1.12 to $64.20 U.S. a barrel.
Prices for gold slid $36.00 to $3,389.300 U.S.
