Shares recover because the US Minister of Finance says that China’s trade war is not sustainable

new York
Cnn
–

Finance Minister Scott Bessent informed the investors on Tuesday that the US China trade war was not sustainable and that he expects the fight against matter that CNN trusted, a person who had assumed a form this morning gave a thrust for a Wall Street rally.

The Dow closed by 1,017 points or 2.66%higher. The S&P 500 rose by 2.51% and the technical NASDAQ rose by 2.71%. The rebound helped to recover the losses of the market on Monday when a large sale of Wall Street grabbed.

The US shares had largely won on Tuesday on Tuesday when the investors Watten onto the market after the steep sale on Monday. The shares expanded their profit day after Bessent had told investors at an event organized by JPmorgan Chase in closed doors that he was expecting the de -escalation in retail with China. The event was first reported by Bloomberg.

According to a person in the room, Bessent said that he would expect both sides to be de -escalated in the near future because China and the United States effectively have embargos due to extremely high tariffs.

Instead of a hard break or a complete decoupling between the United States and China, Bessent told investors that the goal is to repeal a trade statement, the source told CNN.

The three large stock indices reached their highest levels of the day after Besselt.

The Nasdaq and Dow made a four -day defeat and the three main indices each recorded their best day in two weeks. Despite the back bumper, the S&P 500 is on the right track for the worst month in 2022 and the Dow is on the right track for the worst April since 1936.

Investors have been uncertainty about trade negotiations, and President Donald Trump has intensified his criticism of the chairman of the Federal Reserve, Jerome Powell.

The stocks returned some of their profits in the afternoon before the Presses spokesman for the White House, Karoline Leavitt, said reporters said that they spoke to Trump and director of the National Economic Council Kevin Hassett about the Federal Reserve, and both showed doubts about the decisions of the Fed about interest rates – again inflamed concerns that the White House blurred the independence of the FED.

The shares came in the red when the investors of Trump’s continued Tirade against Powell rated Powell because of non -reduced interest rates – a complaint that he raised several times. The independence of the Fed is a license plate of the central bank, and the market observers were burdened by the continuing oral attack by the President on the Fed chairman.

“A multi-front trade war is a lot for itself, so that adding a Fed independence crisis, moreover, is understandably nervous,” said Jeff Buchbinder, Chief Equity Strategist at LPL Financial, in a Monday.

While many experts say that due to the political differences, the president actually does not have the authority to dismiss the Fed boss, Trump has made it clear that he is ready to break with norms and precedent.

Mohit Kumar, chief economist and strategist for Europe at Jefferies, said in a Tuesday that “it will be almost impossible for Trump to remove Powell without cause”, and it is unlikely that Trump will have a broader political support to displace Powell before his term in 2026.

“In addition, as the recent events have shown, the bond market is the pressure point for Trump,” said Kumar. “Any attempt to subdue the independence of the Fed is fulfilled by a strong reaction of the negative bond market, and Trump has to withdraw.”

US shares, government bonds and the dollar sold on Monday in a continuation of a trend that defeated Wall Street. As a rule, investors are looking for refuge in safe ports such as government bonds and the dollar if stocks are sold out in a few moments of uncertainty. This month collapsed this month during the sale in all three American assets.

The yield of the 10-year financial letter and the US dollar ticked on Tuesday, which signaled relative stability after the massive sale on Monday.

Gold on Tuesday briefly reached a new record high over 3,500 US dollars per troy omna before slipping more than 1%. The yellow metal has increased by more than 28% this year and exceeded 27% in the last year. Investors went in the middle of a broad uncertainty about the prospects for the global economy in gold.

Trump’s tariffs and countermeasures from the American trading partners will probably fulfill a strong blow to economic growth worldwide, with US wealth, according to the international monetary fund, is particularly difficult.

Global economic growth is expected to slow down to 2.8% this year, from 3.3% in the previous year and significantly below the historical average, the IMF forecast in its global business on Tuesday. The slowdown in the United States is even steeper, although its economy is probably only growing by 1.8% compared to 2.8% in 2024.

Wall Street this week will be on the side for potential signs of progress in the trade talks, but will also focus on a number of results for the first quarter.

Today, investors will probably be tailored to the results of Tesla (TSLA), which are to be published after the final bell. Elon Musk’s electric vehicle company said goodbye to the market representative in the market value this year, since its stock fell by more than 40%. The decline in the Tesla share comes in the middle of the counter reaction against Musk’s role in the US government and sales of sales in Europe.

According to CNNS Fear and Greed index, “Extreme Fear” was the cross -market mood markets on Tuesday. The index was decided in “Extreme Fear” this month.