Stock Surge on Hopes of Trade War De-escalation

The S&P 500 index rose as optimism grew over U.S.-China trade negotiations. President Trump's softened stance on trade policy and Federal Reserve Chair Jerome Powell's position bolstered markets. Investors are cautiously optimistic as global equities benefit from a potential reduction in tariffs.

The benchmark S&P 500 US stock Index reached a two-week high on Wednesday amid hopes of a de-escalation in the U.S.-China trade war. President Donald Trump calmed markets by scaling back his threats to fire Federal Reserve Chair Jerome Powell.

Negotiations between Washington and Beijing are anticipated to ease the ongoing tariff conflicts, lifting investor sentiment. A Wall Street Journal report suggested that U.S. tariffs on China might decrease significantly, further supporting market recovery.

The Dow Jones, S&P 500, and Nasdaq all posted gains. Analysts attribute this to positive White House remarks, decent earnings reports, and strategic short covering by investors. Despite the optimistic trades, experts note ongoing uncertainties in economic policy.

(With inputs from agencies.)