Wall Street Indexes Extend Rebound After Trump Administration's Flip-flops On Trade and Fed Chai

Barry Adams
23 Apr, 2025
New York City

Wall Street extended gains for the second day in a row amid ongoing flip-flops on U.S. trade policy and Fed Chair attacks. 

The S&P 500 index increased 0.3%, and the Nasdaq Composite advanced more than 0.5% as investors returned to increase stock exposure and shifted their attention to the fresh batch of earnings. 

U.S. Treasury Secretary Scott Bessent told investors in a closed-door meeting that the current high level of trade tensions with China is "unsustainable on both sides," and the two trading partners would have to find a common ground. 

Bessent's comments raised hopes that the Trump administration's punitive tariffs of 145% could be substantially cut as early as this month. 

The unilateral tariffs imposed by the Trump administration have stoked fears of high inflation and a sharp slowdown in the U.S. economy. 

Moreover, as many as one million jobs in U.S. small businesses and an additional three million jobs in China are likely to be lost over the rest of the year if the cumulative U.S. tariffs are imposed starting in May. 

Despite the softening in U.S. rhetoric, trade negotiations between Japan and the U.S. ended with no clear plan amid a lack of priorities and a changing demand list. 

Moreover, the European Union ramped up its scrutiny of leading U.S. tech companies and levied a fine of €500 million on Apple and more than €200 million on Meta Inc. for violating the Digital Markets Act. 

Market sentiment was bolstered for the second consecutive day after Donald Trump reversed his position on Fed Chair Jerome Powell and said he has "no intention of firing" the Fed's chief. 

Earlier in the week, Donald J. Trump launched vicious and unprofessional attacks on the autonomy of the central bank and personal attacks on Fed Chair Powell. 

The sharp tone of the attack scared investors and dragged down major indexes on Wall Street as much as 5%, stoking fears that the U.S. president is looking to step beyond his authority and fire Powell. 

 

U.S. Stock Movers

Tesla Inc. surged 6% to $254.24, and the company reported a decline in revenue, earnings, and electric vehicle unit sales in the latest quarter. 

The stock rallied after the company's chief executive, Elon Musk, said he plans to spend more time at the company and reduce his engagements in Washington, D.C. 

Tesla stock has lost 41% as of the year-to-Monday's close, amid rising competition in China and faltering sales in Germany, Canada, and the U.S.

Customers rejected Musk's political involvement in the Trump administration and reckless management of DOGE. 

Intuitive Surgical soared 5% to $502.0, and the robotic surgery equipment maker reported better-than-expected quarterly results. 

The company added that the proposed U.S. tariffs on imports are expected to shrink non-GAAP gross profit margin to between 65% and 66.5% from 69.1% in 2024. 

SAP SE rose 8.7% to $274.39, and the German software company reiterated its stock repurchase plan after operating profit in the latest quarter jumped 60% from a year ago. 

RTX Corporation jumped 2.6% to $116.53, and the stock rebounded from a 10% plunge in the previous session. 

The company reported strong quarterly sales but signaled that the proposed U.S. tariffs are likely to increase costs by as much as $850 million.