U.S. Stocks Surge Amid Trade Tensions Thaw

U.S. stocks bounced back as trade tensions between the U.S. and China showed signs of easing. Reports from Treasury Secretary Scott Bessent indicated optimism, propelling major indices by over 2.5%. Despite President Trump's outbursts, financial markets found temporary relief as quarterly earnings exceeded expectations.

In a dramatic shift, U.S. stocks rebounded on Tuesday amid growing optimism about a potential de-escalation in trade tensions between the United States and China. Key indices leaped by more than 2.5%, buoyed by encouraging quarterly earnings reports.

Investors seemed to overlook President Donald Trump's intensified critiques of Federal Reserve Chair Jerome Powell, who many see as a market stabilizer. Treasury Secretary Scott Bessent expressed hope for reducing trade tensions, contributing to the market uplift.

Despite the positivity, the S&P 500 remains substantially below its February record high amidst ongoing tariff disputes, leading to a cut in U.S. growth forecasts by the International Monetary Fund.

(With inputs from agencies.)