Global markets experienced a boost as President Trump softened his normally hardline rhetoric towards the Federal Reserve and trade negotiations with China. Investors responded positively to his assurances that he does not plan to fire Fed Chair Jay Powell and his willingness to ease his aggressive tariffs on Chinese imports.

The president's recent shift toward a more conciliatory approach—describing upcoming trade talks as "very nice" and acknowledging that his 145 percent tariff on Chinese goods is excessively high—suggests a possible de-escalation in one of the most significant trade conflicts impacting the global economy. Treasury Secretary Scott Bessent reinforced this outlook by emphasizing the unsustainable nature of the ongoing trade war and the necessity for both sides to reduce tensions.

This development marks a crucial turning point, as investor optimism hangs on the hope that diplomatic progress in trade talks and steadiness in monetary policy will translate into tangible economic benefits, reducing market volatility and fostering growth.