Markets surged midweek after President Trump said he had “no intention” of removing Federal Reserve Chair Jerome Powell. The comment, made late Tuesday, appeared to ease investor anxiety over leadership stability at the Fed and added to hopes that the trade conflict with China might soon cool off.
What to Know:
- Trump’s assurance on Powell helped calm market jitters.
- Treasury Secretary Scott Bessent reportedly told investors he expects the China tariff standoff to ease “very soon.”
- S&P 500 futures pointed to a 2% gain Wednesday, following a 2.5% jump Tuesday.
- Global markets echoed the rally: Japan’s Nikkei rose 1.9%, Hong Kong’s Hang Seng gained 2.5%, and Germany’s DAX jumped 2.8%.
- Taiwan’s benchmark index led Asian gains, rising 4.5%.
- The dollar edged up 0.3% against the euro; U.S. Treasury yields fell.
- Oil climbed 2%, with Brent crude topping $68 a barrel.
- Gold prices pulled back from record highs, dropping over 2%.
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Gold prices fall as Trump eases tone on China and Fed
Gold prices slipped on Wednesday after President Donald Trump signaled a softer approach toward China and Federal Reserve Chair Jerome Powell.
Spot gold fell 1.6% to $3,328.48 an ounce by mid-morning, following a record high of $3,500.05 the previous day. U.S. gold futures also dropped, down 2.3% to $3,340.60.
Analysts say Trump’s remarks reduced market uncertainty, pressuring demand for safe-haven assets like gold. UBS’s Giovanni Staunovo noted that while the dip reflects improved sentiment, prices could still reach $3,500 again in the coming months.
The president’s comments included backing away from threats to fire Powell and expressing optimism on a potential tariff deal with China, though he warned talks could still collapse.
Despite recent gains, the IMF downgraded global and U.S. growth forecasts, citing Trump’s tariff policies as a key risk.
Elsewhere, spot silver rose 1.1% to $32.88. Platinum and palladium also made modest gains.
Two law firms ask courts to permanently block Trump orders
Two top law firms, Perkins Coie and WilmerHale, are set to ask separate judges on Wednesday to permanently strike down executive orders from President Donald Trump that they say are unconstitutional and retaliatory.
The firms argue the March orders punish them for past legal work and associations with attorneys Trump views as political foes. Temporary blocks on the orders were issued last month, but the firms are seeking permanent relief. Jenner & Block is expected to bring similar arguments next week.
The orders have suspended security clearances, limited federal building access, and canceled government contracts for targeted firms. Perkins Coie was singled out for representing Hillary Clinton in 2016, and WilmerHale for ties to former special counsel Robert Mueller.
Trump’s actions are part of a broader effort to penalize institutions he sees as adversaries. Some firms, like Paul Weiss, have negotiated settlements, while others are pushing back in court.
Tesla stock gets some good news as Elon Musk announces DOGE shift
Tesla and SpaceX CEO Elon Musk attends a cabinet meeting held by U.S. President Donald Trump at the White House on March 24, 2025 in Washington, DC.
Getty Images
Tesla shares soared premarket Wednesday after CEO Elon Musk said that he would be deprioritizing his work at the so-called Department of Government Efficiency (DOGE).
The stock rose 6.72 percent to $253.96 per share shortly after 6 a.m. ET, extending after-hour gains following the electric vehicle giant’s first quarter earnings call on Tuesday.
During that call, Musk said, “I think starting probably next month, May, my time allocation to DOGE will drop significantly,” and he would be devoting more time to Tesla.
He added that he would “continue to spend a day or two per week on government matters for as long as the president would like me to do so and as long as it is useful.”
