Stock Market Today: Stocks Rally as Trump Softens Powell Attacks and Hints at Tariff Relief

US stocks surged Wednesday as markets reacted positively to President Trump's softer tone on two major market headwinds: Federal Reserve independence and Chinese tariffs. In a series of remarks, Trump backed off threats to remove Fed Chair Jerome Powell and suggested tariffs on Chinese imports would eventually be reduced, sparking optimism across Wall Street.

By midday, the Nasdaq Composite (IXIC) was leading the charge, up 2.8%, though off earlier highs of more than 4%. The S&P 500 (GSPC) climbed 2%, while the Dow Jones Industrial Average (DJI) rose roughly 650 points, or about 1.5%.

The early relief cooled slightly after Treasury Secretary Scott Bessent clarified that there had been no unilateral offer from Trump to de-escalate the US-China trade war. Still, the president’s shift in tone was enough to lift sentiment in a market shaken by recent volatility and political drama.

Market Movers

• Tesla (TSLA) +5.8%: Shares jumped after CEO Elon Musk said he plans to “significantly” scale back his time spent on non-Tesla ventures, including political distractions and DOGE-related activities. The upbeat reaction came despite Tesla missing Wall Street’s quarterly estimates, with investors betting Musk’s renewed focus could reinvigorate the EV giant.
• Amazon (AMZN) +7.1%: The e-commerce giant rallied after reports suggested steep Chinese tariffs could be slashed, easing cost pressures on its extensive supply chain. Amazon’s stock, already battered by rate-driven consumer slowdowns, benefited from the prospect of more favorable trade conditions.
• Meta (META) +5.3%: Meta surged on the back of broader tech enthusiasm and signs of tariff relief. As a major ad-revenue engine with growing investments in AI and metaverse hardware, Meta stands to gain if trade tensions ease, particularly around component costs.
• Nvidia (NVDA) +5.1%: Chipmakers like Nvidia gained ground after the Wall Street Journal reported potential tariff reductions on tech imports from China. With its deep exposure to global supply chains and China demand, Nvidia was among the biggest beneficiaries of the news.
• Bitcoin (BTC-USD) +2.6%: The cryptocurrency continued its upward momentum, trading above $94,000. With Wall Street in rally mode and inflation expectations rising, bitcoin’s role as a speculative hedge seemed to be back in focus for some traders.

Trump’s Policy Pivot Buoys Markets

Investors were bracing for further volatility this week after Trump’s Monday comments triggered a wave of sell-offs. But by Tuesday evening, the president appeared to reverse course, assuring reporters he “never did” intend to fire the Fed chair. The apparent détente restored some confidence in the central bank’s autonomy—a cornerstone of market stability.

Trump also struck a more conciliatory note on trade, telling reporters he expected China tariffs to come down “substantially.” Though the administration has not made a formal offer, the softening rhetoric hinted at potential movement in what has become a high-stakes, multi-year standoff.

Home Sales Beat as Builders Brace for Tariff Fallout

New home sales jumped 7.4% in March, beating estimates and marking a bright spot in an otherwise murky economic landscape. The seasonally adjusted rate of 724,000 units reflected increased inventory and a springtime surge in listings.

Still, affordability concerns persist, with mortgage rates nearing 7% and home prices on the rise. Builders like PulteGroup (PHM) warned that new tariffs could raise construction costs by 1% in the second half of the year—posing additional challenges for a sector already battling high material prices and labor shortages.

Economic Activity Slows Despite Market Rally

Even as equities soar, underlying economic data paints a more cautious picture. S&P Global’s flash composite PMI for April fell to 51.2—the lowest in 16 months—indicating a slowdown in both manufacturing and services sectors. While any reading above 50 denotes expansion, the drop in business optimism is fueling concern about growth in the second quarter.

“The early flash PMI data for April point to a marked slowing of business activity growth,” said Chris Williamson, chief economist at S&P Global. “At the same time, price pressures intensified, creating a headache for a central bank already under political scrutiny.”

Looking Ahead

Markets may continue to bask in the glow of Wednesday’s rally, but volatility remains a dominant theme. Traders will be closely watching whether Trump's rhetoric on Powell and tariffs translates into concrete policy shifts—or if his softer tone proves fleeting. Upcoming earnings, particularly from tech giants, will also shape sentiment. And with inflationary pressures still lurking and Fed independence under a microscope, the stakes remain high for investors betting on a stable spring rebound.