4:11pm: Steady Fed
US markets shot higher on Wednesday, picking up right where they left off in the previous session. Investors were feeling upbeat, thanks to some encouraging signs on the U.S.-China trade front and a bit of reassurance from the White House about the future of the Federal Reserve.
The Dow rose 420 points, or 1.1%, to finish at 39,607, while the S&P 500 added 88 points, or 1.7%, closing at 5,376. The tech-heavy Nasdaq led the charge with a 2.5% jump, gaining 408 points to end the session at 16,708.
The Russell 2000, which tracks smaller companies, also moved higher, climbing 1.6% to 1,921.
Driving the market’s upbeat mood were remarks from Treasury Secretary Scott Bessent, who hinted that the ongoing trade conflict between the US and China could soon see progress toward resolution. That was enough to lift hopes across a range of sectors.
Adding to the positive tone, President Donald Trump said he has no immediate plans to replace Federal Reserve Chairman Jerome Powell, easing concerns about potential instability in US monetary policy.
3:55pm: Recovery will be a process
LPL Financial’s Chief Technical Strategist Adam Turnquist says the market may have passed peak uncertainty, but a lasting rebound is not guaranteed. In a new commentary, Turnquist notes that the transition in narrative “from tariff rates to tariff deals” is encouraging and suggests investor fear may have peaked. However, the broader technical picture remains weak, with most S&P 500 stocks still trending lower.
“A sustainable recovery will require some much-needed technical repair,” Turnquist said, adding that V-shaped recoveries are rare and usually tied to a Federal Reserve pivot—a move that seems unlikely with Chair Jerome Powell maintaining a “patient” policy stance.
LPL’s Strategic and Tactical Asset Allocation Committee is maintaining a neutral stance on equities, favoring U.S. stocks over emerging markets, growth over value, and large caps over small. Despite a recent rebound, the firm warns of a possible pullback or retest of lows given ongoing tariff uncertainty and rising recession risks. Still, the updated S&P 500 target suggests a “relatively balanced risk-reward trade-off,” and the firm is watching closely for a more compelling entry point.
3:21pm: Stocks on the move
Novavax, Inc. shares jumped over 16% after the company said its COVID-19 vaccine appears “approvable” following discussions with the FDA, despite a request for additional post-marketing data.
General Mills Inc. was rated ‘Sell’ by UBS, which warned of a tough year ahead and said expectations for sales and earnings remain too high.
Tempus AI rose more than 15% after announcing $200 million in strategic collaborations with AstraZeneca and Pathos AI to develop a major oncology AI model.
Philip Morris International Inc. raised its full-year earnings outlook and beat Q1 expectations, boosting shares nearly 3%.
Boeing Co. shares climbed over 7% after the company reported an 18% year-over-year rise in Q1 revenue, aligning with analyst forecasts.
2:45pm: Dollar bounces back
Markets were still rallying on Wedneday afternoon, erasing the previous session’s losses amid renewed trade optimism, solid earnings results, and reassurances over the Federal Reserve's independence.
“Global stock indices received a double boost today,” said Axel Rudolph, Senior Technical Analyst at online trading platform IG.
Rudolph noted that investor sentiment improved after U.S. President Trump signaled he no longer wished to remove Federal Reserve Chair Jerome Powell, easing fears over the central bank's independence. Better-than-expected earnings from major players like Tesla and Boeing added to the momentum, alongside optimism around a possible de-escalation in trade hostilities between Washington and Beijing.
In currency markets, the U.S. dollar bounced back from a three-year low, while commodities saw mixed moves. Crude oil and gold prices tumbled on profit-taking, but silver bucked the trend with a notable rise. “Interestingly enough, the price of silver rose significantly as the gold/silver spread swiftly came off this week’s five-year high,” Rudolph said.
1:48pm: Wednesday's headlines
Gold stocks gave back some of their recent gains on Wednesday after prices for the metal fell sharply in response to more conciliatory comments from US President Donald Trump.
Intel Corp (NASDAQ:INTC, ETR:INL) is preparing to cut more than 20% of its workforce as part of a major restructuring effort aimed at streamlining operations and reviving growth, Bloomberg reported, citing sources familiar with the matter.
Tesla CEO Elon Musk signalled he would scale back his political engagements and return to running Tesla full-time, a move analysts believe is essential to stabilising sentiment after months of damage.
Boeing Co (NYSE:BA, ETR:BCO) shares gained more than 7% on Wednesday as the airplane manufacturer’s first quarter earnings and production update impressed investors.
1:16pm: Markets may weather prolonged US-China trade talks, strategist says
A full trade agreement between the USand China could take as long as two to three years, according to Treasury Secretary Scott Bessent, but market strategist Larry Tentarelli says investors shouldn't be alarmed by the drawn-out timeline.
“Our view has been to expect a very long process, not to expect a quick-fix,” said Tentarelli, Chief Technical Strategist at Blue Chip Daily Trend Report. “The worst-case scenarios are most likely off the table” following a 90-day tariff pause announced on April 9 and a recent softening in rhetoric from the White House, he added.
Tentarelli said markets are likely to adapt to a slower pace of trade negotiations, with investor focus now shifting to corporate earnings—particularly results from tech giants like Alphabet, which reports tomorrow—and the broader economic outlook.
Key technical levels for the S&P 500 are 5100 and 5500, Tentarelli noted. A break above or below those levels on a closing basis could signal the next significant move for the index. He also pointed to the April 7 low of 4835 as a potential floor, provided the US avoids an economic downturn.
Investors should continue to brace for heightened market swings. “Expect wide daily volatility ranges, 2-3%, in the S&P 500 at any time,” he said.
12:25pm: Risk-on rally
Markets are ripping higher at midday as Washington tensions ease.
All three major indices are firmly in the green. The Dow is up 1%, the S&P 500 is climbing 1.4%, and the Nasdaq is leading the charge with a 2.3% surge, as investor confidence makes a comeback.
What’s behind the rally? Investors are feeling more upbeat after President Trump struck a softer tone on two key fronts: his relationship with Fed Chair Jerome Powell and trade policy with China. His more measured comments have helped ease recent worries about central bank independence and global trade tensions.
Tech stocks are powering the gains, with the Nasdaq seeing the biggest boost. Duolingo is soaring more than 9% after a glowing analyst report, while Tesla is up 7%, even though its latest earnings were a mixed bag.
Other sectors are joining in, too—energy and defensive stocks are doing well, thanks to strong earnings and steady demand for safe-haven plays. And with the VIX volatility index down over 8%, it’s clear that traders are shifting back to a more risk-on mindset.
All this comes despite lingering concerns about the broader economy and earnings season. But for now, investors seem encouraged by signs that Washington may help steady the ship.
11:27am: New home sales jump in March
Wells Fargo analysts said the spring selling season for new homes is off to a stronger-than-expected start, with March sales climbing 7.4% and February figures also revised slightly higher. The increase was likely driven by a brief dip in mortgage rates before they rebounded in April following the Liberation Day tariff announcement.
"March’s stronger pace of sales is an encouraging sign that the new home market was not falling apart ahead of the new tariffs and associated market volatility," the analysts wrote.
Year-to-date, sales are up 1.3% from the same period last year, but Wells Fargo noted that growth was concentrated in the South, while other regions posted sharp declines. A drop in median prices also suggests that builders are relying more on price incentives to sustain demand.
Despite the March gains, the analysts warned that "significantly reduced policy certainty, the recent bounce in mortgage rates and dimming economic growth prospects" pose serious challenges for the housing market going forward.
10:44am: Tesla gets 'biggest asset' back
Tesla CEO Elon Musk's decision to step back from DOGE and refocu on Tesla is a “turning point” for the company, said Wedbush analyst Dan Ives following a disastrous first quarter.
“This was the time not for politics... but instead move onto a new chapter and lead Tesla into its autonomous and robotics future,” Ives wrote in a note to clients after Tesla’s earnings call Tuesday evening. He added that Musk appeared “dialed in” and responsive to shareholder and employee sentiment, signaling a decisive shift away from recent political distractions.
The move, according to Ives, effectively marks Musk’s “off ramp” from what he described as the “Trump White House” era—referring to Musk’s recent involvement in political discourse and alignment with right-wing causes.
“Tesla got back its biggest asset… Musk,” Ives wrote, raising his price target on the stock from $315 to $350 and reiterating an Outperform rating. Despite ongoing headwinds including tariffs and competition from BYD in China, Ives sees Musk’s renewed leadership as clearing a “black cloud” that has hung over Tesla’s stock in recent months.
9.55am: Nasdaq roars higher
The Nasdaq got off to a banger of a start, zooming 4% higher in initial trading to wipe out the past two weeks' losses.
The S&P 500 has jumped 3.1% and the Dow Jones 2.6%.
Nvidia, Amazon, Meta, Tesla and Broadcom are all up between 5% and 7%.
"The good news has continued to flow on Wednesday, and this is having a positive impact on risk sentiment," says Kathleen Brooks, research director at XTB.
With that, the good vibes for the financial markets have wrapped around the world today, with Brooks pointing to bond markets in the US and the UK rallying at the middle and longer end of the curve, the dollar broadly higher and one of the best performers today, oil prices higher and gold falling sharply, "as safe havens lose their luster".
President Trump's willingness to not play hardball with China on tariffs "are creating the right mood for risky assets to recover, and at this stage there is nothing to suggest that the comments from both sides are not genuine", says Brooks.
"The issue is, there are still massive tariffs on Chinese and US imports, and talks have not yet started. To avoid a dismal outlook for global growth, as the IMF laid out on Tuesday, an agreement needs to be made quickly."
8.05am: Nasdaq set to lead gains
US stock futures were sharply higher ahead of Wednesday's opening bell, building on a powerful rebound the day before as markets respond positively to a marked shift in tone from the Trump administration on trade.
Dow Jones futures were pointing to a gain of 623 points or 1.58% ahead of the open, while S&P 500 futures were up 2.29%, while the Nasdaq was leading with a 2.69% jump.
The moves follow Tuesday’s surge that saw all major indices climb more than 2.5%, in what analysts described as a full-blown reversal of sentiment.
The rally was sparked by conciliatory remarks from President Trump, who said tariffs on Chinese imports would “come down substantially” and signalled a softer approach toward Beijing.
Treasury Secretary Scott Bessent added that the US-China trade conflict was “unsustainable” and was aiming for “de-escalation”.
Adding to the risk-on tone, Trump confirmed he does not intend to remove Federal Reserve chair Jay Powell, a move seen by investors as easing pressure on central bank independence and dampening volatility in currency markets.
After the dollar index hit a fresh three-year low of 97.55 earlier in the week, it rallied sharply yesterday to briefly break above 99 before pulling back a touch. This morning it is back above that level at 99.1.
David Morrison, senior market analyst at Trade Nation, noted the broader implications: “The shift in tone... eased some of the pressure on the greenback.”
Cryptocurrencies were also a beneficiary of the return of risk-on sentiment, with bitcoin surging above $94,000 and ether rising close to 6%.
With risk appetite firmly back in play, investor focus today will shift to another wave of corporate earnings, including results from Philip Morris, IBM, AT&T, Boeing, and Texas Instruments.
Forward guidance is expected to be cautious amid ongoing trade uncertainty.
After releasing earnings last night, Tesla shares revved up 6.9% in pre-market trading despite posting a year-on-year sales decline, suggesting some disappointments were already priced in.
Boss Elon Musk said from May he will spend less time in his role at the White House's 'department of government efficiency'.
On the post-earnings call, Musk said: “starting probably next month, my time allocation to Doge will drop significantly.”
In other earnings news on Wednesday, Boeing Co gave a lift to its shares in premarket trading as the aerospace and defense group reported a first-quarter loss that was less than half what was expected, helped by increased commercial revenues.