US stocks rose on Thursday for a third consecutive day, driven by expectations of easing trade tensions with China. The S&P 500 index gained 2% after an early wobble, as investors weighed comments from Federal Reserve officials on tariffs’ economic impacts.
The rally followed a previous three-day surge in stock prices, which was sparked by President Trump’s statement that he was prepared to be “very nice” in trade negotiations with China. However, Chinese officials contradicted suggestions about tariff negotiations, saying there were no economic and trade talks between the two countries.
Federal Reserve Governor Christopher Waller told Bloomberg that the economic impact of Mr. Trump’s tariffs would take time to show up in the data, but he suggested that interest rates might be lowered if the unemployment rate rises or consumer spending slows down.
Big companies reported lower earnings forecasts due to tariffs and economic uncertainty. The Nasdaq Composite index rose 2.7%, boosted by gains in technology stocks like Amazon and Nvidia. The US dollar fell against several major currencies, while oil futures recovered some ground.
Despite mixed markets in Asia and Europe, investors remain hopeful for a resolution to the trade tensions. The yield on 10-year Treasury bonds fell to 4.31%, indicating a decrease in market expectations of interest rate hikes.
Source: https://www.nytimes.com/2025/04/24/business/stock-market-trump-tariffs.html