US stock markets closed in the green again on Wednesday, supported by a notable change of tone from President Donald Trump. His willingness to reduce import tariffs on China raised hopes of easing trade relations. Investors reacted optimistically: the dollar rose, volatility decreased, and both stocks and Bitcoin benefited from the positive sentiment.
Calmer Market Due to Minister Bessent’s Statements
The S&P 500 closed 1.7% higher on Wednesday, recording its second consecutive gain. The trading day began with an impressive 3.4% increase, but some of the gains evaporated later in the day. Bitcoin (BTC) also benefited, reaching a high of $94,000 before correcting slightly to around $92,600.
The positive sentiment in the markets was fueled primarily by reports that President Donald Trump was willing to gradually reduce import tariffs on Chinese goods. He also expressed confidence in a positive outcome to the negotiations, stating, “China will be fine once the deal is finalized.”
Treasury Secretary Scott Bessent also contributed to the recovery in market sentiment. He reassured investors by saying that Trump had no plans to fire Fed Chairman Jerome Powell, somewhat alleviating concerns about an institutional crisis.
In response, yields on U.S. Treasury bonds fell, while risky assets like Bitcoin continued to gain ground. Gold, which had risen sharply in recent weeks, lost significantly.
Investors continue to seek guidance
Markets remain volatile, driven by ongoing uncertainty about President Trump’s economic policies. Investors are unsure of where they stand and are being sent from pillar to post. For now, there seems to be no end in sight.
Brent Schutte of Northwestern Mutual Wealth Management put it this way to Bloomberg:
“It’s simply a matter of the perception of how tense the situation really is. I suspect we’ll see more of this in the coming months: a rise and fall of trade tensions until we get some idea of ​​what the future holds.”
It’s remarkable that private investors aren’t deterred by this. According to JPMorgan, more than $30 billion has already flowed into US stocks and ETFs since April 2. The markets are currently balancing on a delicate balance between political signals, interest rate expectations, and corporate earnings.
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