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Your guide to what the second period of Trump means to Washington, business and the world

American stocks went up after Donald Trump said he had no plans to release Federal Reserve Speaker Jay Powell, eliminating concerns about the independence of the central bank in the country that shook the markets this week.

On Wednesday, the S&P ended on Wednesday by 1.7 percent, although Wall Street standards declined from previous gains of more than 3 percent in the latest volatile trading session. The nasdaq technology index increased by 2.5 percent, while Europe Shares It also made gains.

The movements came after the president repeated late on Tuesday his repeated complaint that The federal reserve needs to reduce borrowing costsBut he added: “I do not want to talk about it because I have no intention to shoot [Powell]”

“The markets will welcome the vote of confidence (increasing), but the damage caused to the independence of the Federal Reserve has occurred,” Dario Perkins said, from TS Lombard consultations, in a note to the clients. “Trump wants price cuts, but his evil attacks on Powell made it difficult for the central bank to deliver it.”

The shares were also strengthened by a possible mitigation reduction with Beijing, after Trump said on Tuesday that the customs tariff for Chinese goods “will decrease significantly.”

However, Wall Street’s indicators abandoned some of her early gains later on Wednesday after Treasury Secretary Scott Payet reported that the cancellation of the escalation in the American -Chinese trade war. It must be mutual.

“There must be an escalation from both sides,” he said, adding that the customs tariff imposed by the two countries on each other reached the “siege.”

“The rest between the two countries in trade does not fit the interests of anyone.”

“A large part of the previous purchase on Wednesday was driven by hedge money covering its short positions,” said Charlie McLegout, a strategy expert in arrows in Nomura.

The US dollar increased by 0.9 percent against a basket of their peers, although the currency is still hovering around its lowest levels after more than 8 percent decreased this year so far.

Brent crude, the international oil standard, decreased by 1.9 percent to $ 66.17 a barrel where traders were weighing the possibility that OPEC+ will will Production increases In June.

Broad Stoxx EUROPE 600 increased by 1.8 percent on Wednesday, and the DAX index in Germany has extended recent gains with an increase of 3.1 percent.

The US Treasury’s return for 10 years was slightly less at 4.38 percent. The bond returns are inversely transmitted to prices.

Wednesday’s movements come after a volatile month of financial markets after Trump’s “Tahrir Day” tariffs, which sparked a multi -day stumbling block for American stocks. S&P 500 is still less than 8 percent so far this year despite its recovery this week.

Technology shares have been hit more difficult, as a compound on the Nasdaq Stock Exchange has made more than 13 percent since the beginning of 2025.

Despite this week’s gains, investors remained cautious. “There may be short -term mitigation because the risk of the tail to detonate the American economy has decreased, but has the level of uncertainty suddenly went?” Said Max Keitner, the largest in HSBC.

The markets were shook last week after Trump, who was a continuous critic of Powell, indicated that he believed that he could reject the Federal Reserve Chair before the end of his term in May 2026.

Pesin said on Wednesday that he had no position on whether Trump had the authority to launch the Federal Reserve Chair. “I am not a lawyer, I have no position on,” said Treasury Secretary.

But Pesin said that Trump’s statement on Tuesday that he had no intention to shoot Powell was consistent with the president’s comment last week that “ending” my central banker could not come “quickly enough.”

“The word Terminus – the end,” can mean the end, and “I can’t wait to end it,” Pesint said. … it could only mean May 2026. “

Salman Ahmed, the global president to allocate total assets and the allocation of strategic assets in Fidelity International, described the confrontation between the White House and FED as a “manifestation of basic tension” in the economy.

He said that Trump’s tariff policies had “pressured the double mandate” by increasing inflationary pressures with growth damage as well.

Ahmed said: “This tension will not disappear mainly until we know where the definitions will stabilize.” “The daily flow of news will lead to high fluctuations.”

Additional reports by Ray Douglas in London and George direction in New York