NEW YORK: Wall Street stocks opened decisively higher Wednesday, rallying for a second straight session after President Donald Trump’s latest conciliatory comments on the China trade war and his Federal Reserve chief.
About 15 minutes into trading, the Dow Jones Industrial Average was up 2.6 percent at 40,210.25.
The broad-based S&P 500 jumped 3.2 percent to 5,454.48, while the tech-rich Nasdaq Composite Index surged 4.0 percent to 16,955.66.
Major indices had plunged on Monday after Trump blasted Federal Reserve Chair Jerome Powell on social media for not moving quickly to cut interest rates.
Trump’s broadside on Monday added to worries Trump would seek to fire or replace Powell, a move of uncertain legality that would shock investors accustomed to the US tradition of having an independent central bank.
Wall St bounces back after selloff as investors assess earnings
But Trump’s latest comments buoyed the market.
“I have no intention of firing him,” Trump said Tuesday.
“I would like to see him be a little more active in terms of his idea to lower interest rates – it’s a perfect time to lower interest rates.”
Those remarks were accompanied by more optimistic messaging from the White House about trade talks with China.
“There is definitely a sigh of relief in the markets over both of these comments,” said LBBW’s Karl Haeling.
But the market is aware that Trump’s “tough rhetoric could come back at any time,” Haeling added.
Tesla shot up 4.2 percent despite reporting weaker than expected earnings as CEO Elon Musk announced he would shift his attention back to the electric carmaker, reducing his time spent on Trump’s so-called Department of Government Efficiency.
Boeing rose 6.6 percent as it reported a smaller than expected loss while confirming 2025 targets to raise commercial plane production.
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