US stocks extended profits Wednesday morning after President Trump retreated back to the fire threat of FRED Chairman Jerome Powell, informing him that trade deals were ongoing with lower tariff rates.
The Dow Jones industrial average scored 757 points (1.9%) after surged 1,016.57 points the day before, beating their four-day winning streak.
The S&P 500 and Nasdaq rose 2.5% and 3.5% respectively, up by 9:30am ET.
On Tuesday evening, Trump said he had no intention of firing Powell, whose term as the country’s top central banker expires in May 2026.
Just the day before, the president called Powell the “major loser” for not cutting interest rates and chuckled policymakers under the nickname “Mr. Too Late.”
In a true social post, Trump wrote, “Powell’s end cannot come quickly enough.”
The president also wants investors to cut import taxes on China. This faces a sudden fee of 145%. They are threatening to raise prices on electronic devices, toys, clothing and other items.
China’s 145% rate is “very high, not that high… No, it’s not that high. It’s going to drop significantly,” Trump said.
High-tech stocks of “Magnificent 7” from Apple, Nvidia, Alphabet, Amazon, Meta, Microsoft and Tesla – Rose Registration Bureau on Wednesday. Stocks of these tech companies have been particularly hit hard, as much of their supply chain relies on China.
Nvidia’s shares were 5.8% and Apple Rose was a 3.4% retailer, while Tesla said CEO Elon Musk rose 7.8% during the company’s revenue call, and running Doge would fall “significantly” next month.
Investors raised concerns that mask time was too thin, not focusing on Tesla, and links to the cost-cutting government task force are causing major brand damage, as they burned vehicles outside of Tesla dealers.
White House press chief Caroline Leavitt and Treasury Secretary Scott Bescent also made reassuring comments, claiming that there were “18 proposals on paper” for trade transactions, which likely led to widening tensions in US-China trade.
