What is the reason for this sudden surge?

Last night, the market surged, primarily because of three 'easing' statements made by Trump's team that boosted market confidence.

1. Bessent, a core member of Trump's team, stated at a closed-door meeting with JPMorgan investors that the current tensions between China and the U.S. are unsustainable and will soon see a 'cooling down.' This statement alleviated market fears regarding the trade war.

2. Politico reported that U.S.-China trade negotiations could last for several months. White House press secretary Levitt further stated at a press conference that Trump is paving the way for a U.S.-China trade agreement, and the relationship between the two countries is developing positively.

3. Trump personally spoke out, stating that U.S. tariffs on China will be significantly reduced from the current 145% level. Although it will not drop to zero, China will be very satisfied with the final tax rate. He also expressed no intention to fire Powell but hopes that Powell will be more proactive regarding interest rate cuts.

These three statements, layered and progressive, effectively eased market panic over the trade war and policy uncertainty. Currently, Trump's team continues to advance negotiations, and the market has high expectations for a new trade agreement, while sensitivity to tariff fluctuations is decreasing. Short-term sentiment recovery has become the main driving force for the rise. However, the current market trend almost entirely depends on Trump's whims. It remains uncertain whether he will continue to change his position.