On Wednesday (April 24), U.S. stocks surged as investors' hopes of easing trade tensions were reignited, while U.S. President Trump stated he had no intention of firing Federal Reserve Chairman Powell, alleviating market concerns about the Fed potentially losing its independence. The three major indexes fell back slightly at the close but gained momentum during the session, especially after U.S. Treasury Secretary Besent stated that high tariffs are unsustainable and Trump hinted at easing U.S.-China trade tensions.
Russell Price, chief economist at Ameriprise, said: "We saw strong opening performance, which is closely linked to developments in Washington. President Trump's statement that he has no intention of firing Powell and the potential for significant tariff reductions are clearly good news for the market."
Late Tuesday, Trump's attacks on the Federal Reserve eased as he withdrew his threat to fire Powell. At a time when Trump's chaotic trade policies have unsettled the market, most investors see Powell as a stabilizing force.
Baird investment strategy analyst Ross Mayfield pointed out: "The independence of the Federal Reserve is a cornerstone of developed market economies, and threatening this independence has clearly put pressure on bonds and the dollar, accelerating outflows from U.S. assets to some extent."
As first-quarter earnings season progresses, 110 companies in the S&P 500 index have reported earnings, with 75% exceeding Wall Street's expectations. According to data from the London Stock Exchange Group (LSEG), analysts expect overall earnings for S&P 500 companies to grow by 8.4%, slightly above the previous forecast of 8.0%.
Tesla's stock soared 5.3% after CEO Musk announced he would reduce his work time with the Trump administration next month to focus more on the development of his own company. However, Tesla's quarterly automotive revenue still fell 20%, with net profit plunging 71%.
Boeing's stock rose 6.1% as the company reported a quarterly loss less than expected and produced and delivered more aircraft.
The Dow Jones Industrial Average rose 1.07%, closing at 39,606.57 points; the S&P 500 rose 1.67%, closing at 5,375.86 points; and the Nasdaq rose 2.50%, closing at 16,708.05 points. Among the 11 major sectors of the S&P 500 index, the technology sector and consumer discretionary sector had the largest gains, while the consumer staples sector and energy sector performed poorly.
Economically, the preliminary S&P Global April Purchasing Managers Index (PMI) showed that amid increasing uncertainty, U.S. business activity lost momentum, leading to rising prices for goods and services.
The latest poll shows that only 37% of respondents approve of Trump's economic management, down from 42% shortly after his inauguration on January 20. At that time, Trump promised to boost economic recovery and start a "golden era for America".
