EBC Markets Briefing | Wall St celebrates Trump's compromise
US stocks rebounded on Tuesday as hints at the de-escalation of trade tensions brought buyers in from the sidelines. A broad rally boosted all three major stock indexes by more than 2.5%.
The market jumped further in extended trade after Trump said he has no plans to fire Fed Chair Jerome Powell, stepping back from his recent rhetoric against the central bank chief.
Trump also told reporters he would be very nice in negotiations with China, and that tariffs on imports from the country would fall significantly following a deal, but not to zero.
After being battered for weeks by Washington, the S&P 500 closed nearly 14% below its record closing high reached in February. IMF has slashed its forecasts for US GDP growth to 1.8% in 2025.
Adding to optimism, 82 of the companies in the S&P 500 have reported and 73% among them beat expectations, according to LSEG. Tesla jumped 5% in after-hours trading though its results widely missed the mark.
The company said plans for new affordable vehicles are on track for start of production in the first half of 2025 and that it still expects Robotaxi volume production starting in 2026.
The S&P 500 has been trading in a range since early this month. So the basic scenario is that it will retest the resistance around 5,500 before a retreat.
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Publication date:
2025-04-23 07:34:43 (GMT)
