US markets close higher amid hopes of trade war de-escalation; S&P 500 up 1.6%
Wall Street today: US stocks climbed on Wednesday, driven by renewed optimism over potential progress in the U.S.-China trade talks and reassurances from President Donald Trump, who eased concerns about the Federal Reserve’s independence by stating he has “no intention of firing” Fed Chair Jerome Powell.
The Dow Jones Industrial Average climbed 419.59 points, or 1.07%, closing at 39,606.57. The S&P 500 advanced 88.10 points, or 1.67%, to finish at 5,375.86, while the Nasdaq Composite jumped 407.63 points, or 2.50%, ending the session at 16,708.05.
Boeing, Tesla shares rally
All three major U.S. stock indexes trimmed their gains by the market close. Earlier in the session, they gained momentum after Treasury Secretary Scott Bessent stated that the high tariffs between the U.S. and China were not sustainable, and former President Trump indicated a willingness to ease trade tensions between the two largest global economies.
Out of the 11 key sectors in the S&P 500, technology and consumer discretionary recorded the highest percentage gains, whereas consumer staples and energy underperformed.
Tesla shares climbed 5.3% after CEO Elon Musk announced plans to significantly reduce his involvement with the Trump Administration to focus more on managing his companies. Despite the stock boost, the electric vehicle maker reported a 71% drop in quarterly net profit.
Boeing reported a narrower-than-expected quarterly loss, benefiting from increased aircraft production and deliveries, sending its shares up by 6.1%.
General Dynamics posted a 27% rise in first-quarter profit driven by strong defense demand, but a decline in business jet orders compared to the previous quarter led to a 3.3% fall in its stock.
The US Dollar Index has returned close to the 100 level, gold experienced significant profit-taking, and the 10-year Treasury yield stands at 4.38%.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
