The calm of the trade war gives a new boost to shares in Wall Street

American stocks rose with the improvement of investor morale, amid optimism about a breakthrough in trade relations between the United States and China, according to the American CNBC network.
US President Donald Trump also indicated that he does not intend to dismiss the President of the Federal Reserve, Jerome Powell, in a move that strengthened market confidence.

Perform American stock indicators

The Dow Jones Index increased by 419.59 points or 1.07% to close at 39,606.57 points, while Standard & Poor’s 500 rose by 1.67% to 5,375.86 points, and Nasdak jumped 2.50% to 16,708.05 points. The three main indicators recorded successive gains during the last sessions.
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Analysts: Optimism did not abolish caution

Despite this ascension, analysts indicated that the indicators ended the session below their highest levels, as the Dow Jones index added more than 1100 points during trading, before it declined later. The “Standard & Poor’s 500” increased by 3.44% during the day before it reduced its gains.

Trump relieves his commercial accent

On Tuesday, Trump announced his willingness to adopt a less collision approach in dealing with China, stressing that the current 145% customs duties are “very high”, and are likely to decrease “dramatically” without reaching scratch.
In the same context, Treasury Secretary Scott Besent stated that the two parties have an “opportunity to conclude a major commercial deal,” adding: “If the two sides want to restore balance, let us achieve this together.”
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The market is awaiting calm

“This is what the market was waiting for, even if it was just a slight calm in the commercial conflict … the market is comfortable, and we hope that we have exceeded the worst stages of escalation,” said Keith Bouchanan, director of the governor at Global Investment.

Wall Street Journal: A possible reduction in customs duties

The Wall Street Journal quoted a White House source as saying that the American administration is considering reducing customs duties on China between 50% and 65%, noting that this decision will be conditional on similar measures from the Chinese side to reduce commercial barriers.

The shares of companies related to China

The shares of companies with a large correlation with the Chinese market witnessed a remarkable recovery, especially Apple, which increased by 2.2%, and Anfidia, which rose by more than 3%, and Tsala, which increased by 5%, driven by the statements of CEO Elon Musk regarding the reduction of his role in the “Ministry of Governmental efficiency” in the Trump administration starting from next month.

Powell remains in his position … and the markets breathe a sigh of relief

Investors breathed a sigh of relief after Trump announced that he does not intend to dismiss Jerome Powell, whose term ends in May 2026, despite his previous criticism, and described him last Monday as the “bigger loser”, and his repeated demand to reduce interest rates.

Are investor pessimism justified?

BMB or Capital Markets analysts said that the prevailing pessimism over stocks may be exaggerated, while Brian Bilsky, the bank’s chief investment strategy, said: “We realize that the market environment was difficult, but the market indicators do not indicate an inevitable decline … On the contrary, we may witness a strong recovery soon.”