Global markets breathed a sigh of relief this week after a pair of statements from Washington helped soothe investor nerves and send stock prices climbing.
On Tuesday, President Donald Trump made a public move to cool down speculation by confirming he has “no intention” of firing Federal Reserve Chair Jerome Powell. That single sentence seemed to be all it took to ease a wave of anxiety gripping investors. Adding to the optimism, Treasury Secretary Scott Bessent signaled progress on the U.S.-China trade front, suggesting the tariff standoff might begin to thaw “in the very near future.”
Wall Street responded with enthusiasm. The S&P 500 surged 2.5% on Tuesday, erasing a steep 2.4% loss from the previous day. The upbeat momentum didn’t stop there—markets across Asia picked up the baton, rallying on renewed hopes for policy stability and trade resolution.
Here’s a quick look at the global bounce:
- Japan’s Nikkei 225 rose 1.7%
- Hong Kong’s Hang Seng Index jumped 2.4%
- South Korea’s Kospi added 1.5%
- Taiwan’s benchmark index led the charge with a 3.9% gain, rebounding from heavy losses suffered earlier during the trade war turbulence
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Even futures trading in the U.S. looked bullish heading into Wednesday, with S&P 500 futures signaling another 1.4% rise.
Still, seasoned investors are treating the rally with cautious optimism. The broader picture remains clouded by ongoing geopolitical risk and sensitive market sentiment. It’s worth noting that despite this week’s rebound, the S&P 500 is still down nearly 12% from where it stood on January 20—the day Trump officially took office.
Beyond equities, other financial indicators also reflected the market’s shifting mood:
- The U.S. dollar made modest gains, rising 0.3% against the Japanese yen and 0.2% against both the euro and the British pound.
- Gold prices, which had soared to a historic $3,500 per ounce earlier in the week, slipped to $3,334—a 1.4% drop—as investor appetite for safer assets cooled slightly.
- Oil futures inched up 0.6%, while ten-year U.S. Treasury bond yields fell 15 basis points to 4.35%, signaling renewed demand for government debt.
All told, it was a much-needed day of breathing room for global markets, which have been on edge amid trade uncertainty and policy unpredictability. Whether this signals a longer-term recovery or just a temporary pause in volatility remains to be seen—but for now, Wall Street is enjoying the break from the rollercoaster.
