Wall Street Surges on Trade War Hopes and Fed Assurance

Wall Street's main indexes reached a one-week high, buoyed by hopes of easing U.S.-China trade tensions and a softer stance from President Trump on sacking Fed Chair Jerome Powell. Positive corporate earnings, notably from Tesla, further fueled the market rally.

Wall Street's key indexes soared to a one-week peak on Wednesday amid optimism about reduced U.S.-China trade hostilities and President Trump's softened position on Federal Reserve Chair Jerome Powell. The shift boosted market sentiment following reports of potential tariff reduction.

A Wall Street Journal article highlighted a senior White House official's optimism regarding U.S. tariffs on China potentially easing to between 50% and 60%, sparking a surge in stock prices. The market's mood was further lifted as President Trump clarified he had no immediate plans to dismiss Powell, a move previously criticized and feared to threaten central bank independence.

Corporate earnings acted as a further catalyst, particularly Tesla, which exceeded expectations leading to a substantial stock price increase. Tech stocks also experienced uplift, enhancing Nasdaq's performance significantly. Additionally, Boeing led the Dow's gains by reporting better-than-expected quarterly financial results.

(With inputs from agencies.)