#MarketRebound

Global markets reversed course following US President Donald Trump’s shift in tone on both China and Federal Reserve Chair Jerome Powell. Stocks rebounded, the US dollar strengthened, and gold prices retreated as investor sentiment improved.

Speaking at the White House on Tuesday, President Trump stated that tariffs on China would be reduced “substantially,” though “they won’t be zero”. His comments echoed earlier remarks by Treasury Secretary Scott Bessent, who said that high tariffs were not sustainable and that a de-escalation in the US–China trade war was expected.

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In a separate Oval Office meeting, Trump told reporters that he had “no intention” of firing Fed Chair Jerome Powell. “I would like to see him be a little more active in terms of his idea to lower interest rates,” Trump said. “This is a perfect time to lower interest rates.” These comments marked a significant softening from his previous post on Truth Social, where he labelled Powell “Mr Too Late, a major loser”.