Stocks rally after Trump voices optimism on China, Powell

The stock market rallied Wednesday morning as trading opened for the first time since President Trump softened his approaches to trade with China and frustrations with the Federal Reserve.

The Dow Jones Industrial Average opened with a gain of more than 700 points Wednesday, rising roughly 2 percent. The S&P 500 index and Nasdaq composite also opened with sturdy gains, putting the market on track for its second day of gains.

The stock market rally comes after Trump told reporters Tuesday afternoon — after the market closed — he has “no intention” to fire Fed Chair Jerome Powell despite repeatedly criticizing him and threatening his job security throughout the past two weeks.

The president also told reporters he likely would slash the 145 percent import tax rate he imposed on Chinese goods, and voiced optimism in a trade pact with Beijing.

“145 percent is very high. It won’t be that high, it’s not going to be that high … it won’t be anywhere near that high,” Trump told reporters Tuesday in the Oval Office. “It will come down substantially, but it won’t be zero.”

“We’re going to be very nice. They’re going to be very nice, and we’ll see what happens. But ultimately, they have to make a deal, because otherwise they’re not going to be able to deal in the United States,” Trump said, referring to China.

Treasury Secretary Scott Bessent is scheduled to speak at 10 a.m. EDT on the state of the financial system, following weeks of concerns about the stability of markets.