Dow Jones and Nasdaq: Boeing, Microsoft, Apple Power Industrial and Tech Rebound

Wall Street Rallies on China Tariff Rollback Hopes and Fed Stability

U.S. stocks are surging shortly after the opening on Wednesday, with the Dow Jones Industrial Average climbing over 1,000 points, as investor sentiment turned bullish following reports that the White House may significantly reduce tariffs on Chinese imports.

A Wall Street Journal report citing a senior administration official stated the tariffs could be lowered to a range of 50% to 65%, fueling optimism about easing trade tensions.

The S&P 500 and Nasdaq each rose more than 2%, with risk appetite further supported by a more conciliatory tone from President Trump toward the Federal Reserve and China.

Is a U.S.-China Trade Thaw Taking Shape?

The market rally was driven by growing expectations that the tariff war with China may ease. Comments from Treasury Secretary Scott Bessent emphasized a cooperative trade stance, stating “America First” does not mean “America alone.”

President Trump also hinted at reducing tariffs from the steep 145% currently imposed, which market participants interpreted as a significant pivot.

The report gave investors a reason to bid up China-exposed names, with Apple and Nvidia gaining 4% and 5.8% respectively, while Tesla jumped 8% on both trade optimism and company updates.

Which Sectors Benefited the Most?

Technology led the charge, particularly semiconductors and AI-related names, buoyed by reduced tariff concerns.

The Philadelphia Semiconductor Index posted strong gains, reflecting sharp rebounds in chipmakers like AMD (+8.1%), Micron (+6.3%), and Nvidia (+5.8%).

Consumer discretionary stocks also rallied, helped by Tesla’s rebound and gains in Amazon (+7.9%) and Lululemon (+4.2%).

Financials saw strength from improved risk sentiment, with JPMorgan up 4.4% and Goldman Sachs gaining 5%.

Which Stocks Powered the Dow and Nasdaq Higher?

Dow components surged, led by Boeing (+7.3%), Apple (+4%), and American Express (+6.3%). Microsoft rose 3.6%, contributing to both the Dow and Nasdaq gains.

Salesforce climbed nearly 5%, while Home Depot and Caterpillar added over 2% and 3.9% respectively, signaling broad-based participation in the rally.

Nasdaq standouts included Palantir (+9%), MongoDB (+9.9%), and CrowdStrike (+7%), showing continued investor interest in cybersecurity and enterprise software plays.

What’s Next for Markets?

Traders will focus on upcoming economic indicators and whether tariff cuts become official policy. Any confirmation of reduced U.S.-China trade barriers could prolong the equity rally.

Fed Chair Jerome Powell’s policy stance remains crucial, especially with recent dovish remarks from Fed Governor Adriana Kugler supporting a rate hold due to inflation risks tied to tariffs.

While Wednesday’s gains reflected relief buying, sustained upward momentum will hinge on follow-through from the White House and further clarity on inflation and rate policy.

More Information in our Economic Calendar.