NEW YORK, New York - U.S. President Donald Trump retreated from his harsh approach to trade negotiations with China on Wednesday, and announced he would not fire Federal Reserve Chair Jay Powell. The about-face on both fronts set markets across the world on fire, with major gains being recorded across the board. However significant damage remains. 

In the U.S., profit-takers trimmed the surge on Wall Street with the Dow Jones having risen as much as 1,100 points earlier in the day, down-sizing that gain to 420 points.

President Trump earlier in the day conceded his 145 percent tariff on China was "very high."

"It won't be that high," he said. "No, it won't be anywhere near that high. It'll come down substantially. But it won't be zero," he added.

Following are Wednesday's closing quotes for key U.S. stock indices:

• The Standard and Poor's 500 climbed to 5,375.86, marking an increase of 88.10 points or 1.67 percent.​

• The Dow Jones Industrial Average rose by 419.59 points, or 1.07 percent, closing at 39,606.57.​

• The NASDAQ Composite experienced a substantial uptick, advancing 407.63 points or 2.50 percent to finish at 16,708.05.​

The rally was fueled by reports suggesting that U.S. tariffs on Chinese imports might be reduced to between 50 and 60 percent, indicating a possible de-escalation in the ongoing trade tensions.Additionally, President Trump's recent comments affirming his intention not to dismiss Fed Chair Powell helped alleviate investor concerns regarding the central bank's autonomy.

Global Forex Market Update: U.S. Dollar Strengthens Amid Easing Trade Tensions, Trump backdown on Powell

On Wednesday, the U.S. dollar experienced a notable surge across major currency pairs, buoyed by President Donald Trump's softened stance on trade policies and reassurances regarding the Federal Reserve's leadership. These developments alleviated investor concerns, leading to a strengthened greenback.​

Key Currency Movements:

• EUR/USD: The euro declined by 0.83 percent against the US dollar, settling at 1.1324.​

• USD/JPY: The dollar appreciated by 1.24 percent against the Japanese yen, reaching 143.33.​

• USD/CAD: The greenback rose by 0.55 percent against the Canadian dollar, trading at 1.3883. ​

• GBP/USD: The British pound weakened by 0.47 percent against the US dollar, changing hands at 1.3264. ​

• USD/CHF: The US dollar gained a significant 1.36 percent against the Swiss franc, ending at 0.8298. ​

• AUD/USD: The Australian dollar edged down by 0.10 percent against the US dollar, to 0.6358.​

• NZD/USD: The New Zealand dollar decreased by 0.22 percent against the dollar, to 0.5950.​

The U.S. dollar's strength was underpinned by President Trump's remarks indicating no intention to dismiss Federal Reserve Chair Jerome Powell and a willingness to reduce tariffs in potential trade agreements with China. These statements eased market apprehensions about the Fed's independence and trade tensions, fostering a risk-on sentiment.​

In Canada, the loonie's decline was further influenced by falling oil prices, a critical export for the country. ​

Meanwhile, the Swiss franc's significant appreciation in recent months has pressured the Swiss National Bank, as a stronger franc poses challenges to inflation targets and export competitiveness. ​The SNB got some respite on Wednesday as the franc led the declines.

Global Markets Rally on Wednesday Amid Optimism Over Trade and Tech

Global stock markets surged on Wednesday, April 23, 2025, as investor sentiment was buoyed by easing trade tensions and robust corporate earnings, particularly in the technology sector.

Canadian Market​

• Canada'sS&P/TSX Composite Indexalso saw gains, adding 166.70 points or 0.69 percent to close at 24,472.68.​​

UK and particularly Europe See Broad Gains

European indices posted strong performances:​

• The FTSE 100 climbed to 8,403.18, up 74.58 points or 0.90 percent.​

• Germany's DAX rose by 668.44 points, a 3.14 percent increase, closing at 21,961.97.​

• France's CAC 40 advanced 155.89 points to 7,482.36, marking a 2.13 percent gain.​

• The EURO STOXX 50 index increased by 137.29 points, or 2.77 percent, ending at 5,098.74.​

• The Euronext 100 Index added 25.44 points to reach 1,487.26, up 1.74 percent.​

• Belgium's BEL 20 gained 47.95 points, a 1.13 percent rise, closing at 4,286.28.​

Asia-Pacific and Southeast Asian Markets Rally

Asian markets mirrored the positive trend:​

• Hong Kong's Hang Seng Index surged by 510.30 points, or 2.37 percent, to 22,072.62.

• China's SSE Composite Index edged down by 3.40 points, a 0.10 percent decrease, closing at 3,296.36.​

• Japan's Nikkei 225 climbed 648.03 points to 34,868.63, marking a 1.89 percent gain.​​

• Singapore's STI Index rose 36.91 points to 3,832.32, a 0.97 percent increase.​

• Australia's S&P/ASX 200 climbed 103.80 points, or 1.33 percent, closing at 7,920.50.​

• The All Ordinaries index advanced by 111.50 points to 8,125.20, up 1.39 percent.​

• India's S&P BSE SENSEX increased by 520.90 points, a 0.65 percent gain, ending at 80,116.49.​

• Indonesia's IDX Composite rose 96.11 points to 6,634.38, up 1.47 percent.​

• Malaysia's FTSE Bursa Malaysia KLCI added 14.94 points, a 1.01 percent rise, closing at 1,501.19.​

• New Zealand's S&P/NZX 50 Index gained 119.78 points to 11,956.47, up 1.01 percent.​

• South Korea's KOSPI Composite Index increased by 38.92 points, a 1.57 percent gain, ending at 2,525.56.​

• Taiwan's TWSE Capitalization Weighted Stock Index surged by 845.71 points to 19,639.14, marking a 4.50 percent increase.​

Middle East and Africa

• Israel's TA-125 index rose 42.93 points, or 1.71 percent, to 2,552.26.​

• Egypt's EGX 30 Price Return Index advanced by 796.00 points to 31,640.20, a 2.58 percent gain.​

• South Africa's Top 40 USD Net TRI Index experienced a slight decline, dropping 13.94 points, or 0.29 percent, to 4,768.06.​

Currency Markets

The US Dollar Index strengthened by 0.88 points, a 0.89 percent increase, reaching 99.80.​

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Tuesday 22 April 2025 | U.S. stocks rebound, Dow Jones jumps 1,017 points | Big News Network