Market Rally and Corporate Performance
U.S. stocks experienced a significant rally, with the climbing 2.5%, the rising by 1,016 points (2.7%), and the Nasdaq composite gaining 2.7%, recovering from earlier losses attributed to 's trade war and criticism of the .
Major U.S. companies reported better-than-expected profits, driving stocks higher. , , and saw notable gains, each benefiting from strong financial performance and, in some cases, the impact of tariff-related market changes.
Trade War Impacts and Federal Reserve's Role
The volatility in financial markets has been partly due to uncertainty over Trump's trade policies, including tariffs on China and other countries, and his potential to influence the Federal Reserve's leadership.
Trump's announcement that he would not fire Federal Reserve Chair and expectations of a trade war de-escalation contributed to the market's positive turn. Meanwhile, the International Monetary Fund cut its global growth forecast, highlighting the wider economic concerns.