Wall Street Gains Amid Tariff Optimism, Trump Backs Powell

Wall Street's major indexes rallied sharply as optimism grew over a possible de-escalation in the U.S.-China trade dispute, following reports that tariffs could be significantly reduced and President Trump expressing a more conciliatory tone toward China. Market sentiment was further boosted when Trump assured he had no intention of firing Federal Reserve Chair Jerome Powell, easing concerns about the central bank's independence that had recently rattled markets. Analysts noted that these developments restored investor confidence, suggesting that the worst of trade tensions and uncertainty over Fed leadership may have passed, at least temporarily. The rally was also supported by strong corporate earnings, with companies like Tesla and Boeing posting better-than-expected results. However, some experts cautioned that the market's gains could be short-lived if the administration's messaging becomes inconsistent. Overall, the combination of trade optimism, a stable Fed outlook, and positive earnings reports contributed to a significant recovery in U.S. equities.