Global financial markets rebounded this week after U.S. President Donald Trump signaled a more conciliatory tone towards both U.S.–China trade relations and the Federal Reserve, easing investor concerns after weeks of economic turbulence.
Trump, who had repeatedly criticized Federal Reserve Chair Jerome Powell for not cutting interest rates, told reporters on Tuesday that he has “no intention of firing him.” However, He reiterated his desire for Powell to take a more aggressive approach to lowering rates to stimulate the U.S. economy.
Trump also expressed optimism about securing a trade deal with China, stating that tariffs would “come down substantially” but not be eliminated entirely. U.S. Treasury Secretary Scott Bessent called the current trade conflict “unsustainable” and expected a de-escalation of the trade war. The U.S. recently imposed 145% tariffs on Chinese imports, and Beijing swiftly retaliated with 125% tariffs on American goods.
Markets reacted positively with the S&P 500 rising 2.5%, the Dow gaining 1.13%, and the Nasdaq jumping 2.7%. Asian markets also rallied, with Japan’s Nikkei 225 up 1.9% and Hong Kong’s Hang Seng rising 2.4%. European markets opened higher as well. The U.S. dollar rebounded from recent lows, while gold prices fell over 4% from record highs. Bitcoin jumped over 6% to trade above $93,000.
