Stock Market Today: Stocks end higher on hope for China trade deal, Trump's Fed remark

Updated at 4:35 p.m. by Rob Lenihan

Stocks finished higher Wednesday, boosted by the possibility of trade talks and President Donald Trump's pledge not to remove Federal Reserve Chairman Jerome Powell.

The Dow Jones Industrial Average surged 419.59 points, or 1.07%, to finish the session at 39,606.57, while the S&P 500 gained 1.67% to close at 5,375.86, and the tech-heavy Nasdaq climbed 2.50% to end the day at 16,708.05. 

Louis Navellier, chairman and founder of Navellier & Associates, noted that Trump said in a news conference that the final tariffs on China will be lower than they are currently and added that if China and the U.S. cannot agree, he may still lower key tariffs. 

Trump predicted that the final tariff on China would not be “anywhere near” the 145% level he has set and added that “we’re going to be very nice.”

"The stock market is a manic crowd that likes to react first and think second," Navellier said. "It is now time to think and prosper during another spectacular earnings announcement season."

"Spring has arrived, and consumers are increasingly getting out and about, which is why the strongest retail sales in two years just occurred," he said. "So, I want you to be like our Treasury Secretary, Scott Bessent, and 'Do Not Worry, Be Happy.'

3:42 p.m. 

Stocks hold gains despite economic unease

Stocks were holding onto sizable gains Wednesday as many investors cheered the possibility trade talks between the United States might at least start.

At the same time, President Trump's announcement he wouldn't try to remove Federal Reserve Chairman Jerome Powell cheered the market, too. 

The market's gains came despite a report from the Federal Reserve that uncertainty about international trade was pervasive across the country. 

At 3:40 p.m. ET, the Standard & Poor's 500 index was up 1.3% at 5,350. The Dow Jones industrial Average was up 330 points, or 0.9%, to 39,525. The tech heavy Nasdaq Composite Index was up 2.2% to 16,654.54. The index was led by such stalwarts as Tesla  (TSLA) , Amazon.com  (AMZN)  and Nvidia  (NVDA) .

The Fed's Beige Book report, compiled by the Fed's 12 regional banks, noted deep uncertainty about tariffs and the state of the economy. The Cleveland Fed noted consumers were buying new vehicles now to get ahead of tariffs.

Bessent continues to say China tariff situation unsustainable

The China talk started Tuesday when Treasury Secretary Scott Bessent said the tariff situation with China was unsustainable. The U.S. is imposing tariffs of up 145% on some Chinese imports.

Then, the president said he might consider knocking the tariffs down to something around 50%. There were thoughts he might make the cut unilaterally. The White House said there would be no unilateral cuts. 

Meanwhile, China was content to wait.

"Our doors are open, if the U.S. wants to talk," a statement from the Chinese embassy said on Wednesday. "If a negotiated solution is truly what the U.S. wants, it should stop threatening and blackmailing China and seek dialogue based on equality, respect and mutual benefit.

Three CEOS tell the president what to expect

CEOs from three giant companies appear to have played a role in getting the President to tone down his tariff talk.

The trio, from Walmart  (WMT) , Target  (TGT) , and Home Depot  (HD) , "did not mince words" about what might occur if the tariff issues doesn't get resolved, according to an Axios report.

The executives met with Trump Monday afternoon and told him warned him that his tariff and trade policy could disrupt supply chains, raise prices and empty shelves, according to sources familiar with the meeting.

While retail prices aren't rising now, the trio said price increases will start to hit in perhaps two weeks.

Gold takes a breather

Gold hit $3,509 an ounce in early Tuesday trading and then fell back. The metal was falling again Wednesday, to $3,313 an ounce in New York, down $105.

The runup to $3,500 had all the characteristics of a bubble waiting to burst, and it did. Gold stocks were lower. Newmont NEM, one of the biggest U.S.-domiciled producers was down 2.3% to $53.27.

Crude oil, meanwhile, was down $1.57 a barrel to $62.12 a barrel in New York. Brent crude, traded in London, was down $2.50 to $64.94.

AAA's national gas price was $3.171 a gallon on Wednesday, up from $3.166 on Tuesday. 

Stock Market Today

Stocks soared at the open Wednesday for a second day in a row as investors cheered President Donald Trump's comments that he hoped a trade deal with China could negotiated soon.

The rally retreated from frenzied levels when it became apparent a deal wasn't remotely close and might take weeks or months — once the United States and China actually started to negotiate.