Wall Street Rallies Amid Hints of Trade Peace

Stock indexes surged as hopes rose for a reduction in U.S.-China trade tensions. President Trump indicated potential tariff cuts, boosting investor confidence. Major gains across Dow, S&P 500, and Nasdaq were driven by strong earnings from Tesla and Boeing, amid Trump's softened stance on firing Fed Chair Powell.

Wall Street's major indexes soared on Wednesday, bolstered by the potential easing of tensions in the U.S.-China trade war. The S&P 500 reached a two-week high following reports suggesting the Trump administration is considering lowering tariffs on Chinese imports, signaling a de-escalation in the ongoing economic conflict.

President Trump's shift in rhetoric came as a relief to investors, amid fears over Federal Reserve Chair Jerome Powell's job security. The President retracted earlier threats to dismiss Powell, reassuring the market of the central bank's autonomy. This helped U.S. stocks and the dollar recover from recent losses, added further buoyancy.

Investor sentiment was also lifted by strong corporate earnings. Tesla shares soared nearly 8% following stronger-than-expected profits, while Boeing's performance pushed its stock up 7.2%. With consumer discretionary and information technology sectors leading advancements, the Nasdaq saw significant outperformance, reflecting renewed optimism on Wall Street.

(With inputs from agencies.)