By John Meyer, consultant in financial affairs – Eurasia Business News, April 22, 2025. Article No 1488.

U.S. shares rebounded strongly on Tuesday, with major indexes climbing 2.5% or more, and big tech stocks recovering some losses from the previous day. This rally was driven by optimism stemming from remarks by Treasury Secretary Scott Bessent regarding the ongoing trade tensions with China.

At a private investor summit in Washington, Bessent expressed his belief that the current tariff standoff between the U.S. and China is unsustainable and anticipated a near-term de-escalation of the trade war. He conveyed confidence that a deal can be reached, even though formal negotiations with Beijing have not yet begun. His comments provided relief to global markets, contributing to the stock rebound.

The backdrop includes steep reciprocal tariffs between the two countries, with China imposing tariffs up to 145% on U.S. goods and the U.S. imposing tariffs up to 125% on Chinese products. Despite the high tensions and retaliatory measures, Bessent emphasized that the goal is not to decouple the economies but to reach a significant agreement. This positive outlook contrasts with the previous market uncertainty caused by tariff escalations and President Trump’s criticisms of Federal Reserve Chair Jerome Powell.

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The International Monetary Fund slashed its U.S. and global economic forecasts, warning that tariffs were ushering in a new era of slower growth.

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Additionally, the White House has maintained an optimistic stance on trade negotiations. President Trump has expressed openness and optimism about reaching a deal with China, as reiterated by White House Press Secretary Karoline Leavitt. The administration is also engaged in trade discussions with other countries, including India and Europe, aiming to finalize agreements within a 90-day window before imposing steeper tariffs.

In recent trading today :

The Dow Jones Industrial Average climbed nearly 1,000 points, or 2.5%. The Nasdaq Composite rose 2.4%.

Treasury yields wavered. The 10-year fell to 4.389%.

The Cboe Volatility Index retreated to near 31. Wall Street’s “fear gauge” had jumped Monday.

Bitcoin rose. The price of the cryptocurrency topped $91,000.

Overseas stocks were mixed. European benchmarks mostly rose. Hong Kong’s Hang Seng Index added 0.8%, while Japan’s Nikkei 225 ticked lower.

Gold prices are down and losing altitude at midday and have lost solid early gains that saw the market hit another record high of $3,509.90, basis June Comex futures. Profit taking from the shorter-term futures traders is featured, much of which is prompted by a solid rebound in the U.S. stock indexes today.

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© Copyright 2025 – Eurasia Business News. Article no. 1488.