Global Stocks Rally on US Tariff Reduction Signals

Global stock markets rallied after President Trump indicated he would not remove Federal Reserve Chair Jerome Powell and signaled a likely reduction in US tariffs on Chinese goods, easing fears of worsening trade tensions. Major US indices, including the Dow Jones, S&P 500, and Nasdaq, posted significant gains, with parallel surges in Asian markets like the Hang Seng and Nikkei 225, as well as European indices such as Germany’s DAX and France’s CAC 40. Investor confidence was further buoyed by Treasury Secretary Scott Bessent’s comments suggesting US-China trade tensions were unsustainable and hinting at de-escalation. European and Asian markets followed Wall Street's lead, driven by the prospects of central bank stability and reduced trade hostilities. Commodities such as crude oil also rose, while bond yields fluctuated as demand for safe-haven assets decreased. Despite the rally, analysts warned that market volatility could persist amid ongoing policy developments and profit-taking.