President Donald Trump’s aggressive trade policies, including steep tariffs on China and public criticism of Federal Reserve Chair Jerome Powell, sparked concerns among top White House advisers and corporate leaders, who feared economic instability and supply chain disruptions. However, Trump later walked back his threats to oust Powell, calming financial markets. Wall Street rallied following remarks from Treasury Secretary Scott Bessent suggesting a potential de-escalation in the U.S.-China trade war, with the Dow, S&P 500, and Nasdaq all posting significant gains.

Despite the rally, stocks retreated from their peak levels after Bessent cautioned that resolving trade imbalances could take time. Treasury yields also fluctuated, initially dropping before rebounding. While markets welcomed the reduced tensions, uncertainty over trade negotiations and Fed leadership remains a lingering concer