US stocks surged, with the Nasdaq and S&P 500 gaining 3% and 2%, respectively, following President Trump's softened stance on China tariffs and assurance that he won't remove Federal Reserve Chairman Jerome Powell. Trump indicated that the 145% tariff on Chinese imports will decrease, although not to zero. While Treasury Secretary Scott Bessent cautioned that both countries must agree to lower tariffs, the market reacted positively to Trump's less aggressive rhetoric, potentially fueled by a short squeeze. Companies with China exposure saw significant gains, including Amazon and Meta Platforms.

Prepared by Christopher Adams and reviewed by editorial team.