Wall Street roved Tuesday after the Trump administration said it had received “18 proposals” for trade deals. And the market is ready for another rally on Wednesday about new optimism in dealing with China.
President Trump calls the 145% tariff he imposed on China “very high,” indicating that they “essentially” contracted that they were in work.
“It’s not that expensive,” Trump said.
In another positive development, Trump said he had no intention of firing Federal Reserve Chairman Jerome Powell, but that possibility shook the market on Monday.
His comments come after the Dow Jones industrial average surged 1,016.57 points, or 2.7%, recovered all of Monday’s sudden 970 points losses, beating a four-day streak.
The S&P 500 and the high-tech Nasdaq composite closed over 2%.
Earlier in the day, the White House said it had made many advances in trade transactions.
“We currently have 18 proposals on paper brought to the trade team,” said Executive Director Carolyn Leavit.
“We are moving at Trump speed to ensure these transactions are made on behalf of American workers and Americans.”
Market rebound comes amid escalating tariffs between the US and China and growing concerns over the Fed’s independence.
Treasury Secretary Scott Bescent said trade negotiations with Beijing are likely “slow,” but he believes there is emissions of trade tensions between the US and China.
“The roller coaster continues,” said Ryan Detrick, chief market strategist for the Carson Group in Omaha. “Thanks to Bescent’s comments, the melting of the US-China attack (between the US and China) helped to enhance things.”
“Washington understands uncertainty around tariffs is hurting the market and may be able to get some positive news in the future on trade,” Detrick added.
These uncertainties have prompted the International Monetary Fund to cut its US economic growth forecast to 1.8% in 2025, citing the impact of US tariffs at a 100-year high.
The first quarter revenue season attracted steam.
So far, 82 S&P 500 companies have reported. According to LSEG, 73% of them beat expectations.
Analysts are currently looking at 8.1% S&P 500 revenue growth from January to March.
“Current revenues show a continuation of a good foundation, but this is no surprise,” said Bill Meltz, head of capital market research for US bank asset management in Minneapolis.
On Monday, Trump continued his public campaign against Fed Chairman Jerome Powell, calling him “Mr. Two Late” and “the major loser,” and accusing him of in a post about the true social society of claiming that Trump is necessary to prevent an economic slowdown.
Trump hinted last week that Powell could be removed from his position. It is a very unusual and legally questionable move that has been under review for later confirmed Kevin Hassett, White House economic advisor, is under review.
Powell has publicly stated that he cannot be rejected and plans to serve until the end of his term in May 2026.
“There is so much uncertainty right now in the tariff cycle and the economy,” Larry Tentarelli, founder of Blue Chip Daily Trend Report, told CNBC.
“Adding another uncertainty to Jerome Powell adds more volatility to the market overall.”
The broader market has been under pressure since Trump announced on April 2 that he wiped out “mutual” tariffs.
