(Reuters) – U.S. stocks bounced back on Tuesday, April 22, 2025, driven by upbeat corporate earnings and signs of a possible easing in U.S.-China trade tensions, as investors returned to the markets after weeks of volatility.
Gains accelerated in after-hours trading following President Donald Trump’s remarks that he has no intention of removing Federal Reserve Chair Jerome Powell—marking a notable shift in tone after recent criticism of the central bank chief.
Trump also suggested a more conciliatory approach to trade negotiations with China, telling reporters he would be “very nice” during talks and hinted that tariffs on Chinese imports could be significantly reduced after a deal—though not eliminated entirely.
Following Trump’s comments, S&P 500 futures surged nearly 2%, signaling a potential rally when markets open on Wednesday. Major tech stocks reacted positively in extended trade: Amazon.com and Nvidia both climbed 3%, while Apple rose 2%.
Broad Gains During Tuesday’s Session
During the regular trading session, all three major U.S. indexes rose by more than 2.5%, as investors looked past Trump’s earlier attacks on Powell. Market sentiment improved amid hopes that policy uncertainty might be easing.
Despite the rebound, the S&P 500 remains nearly 14% below its all-time high reached on February 19, underscoring the depth of the recent market downturn fueled by escalating global trade disputes.
Treasury Comments Offer Further Reassurance
U.S. Treasury Secretary Scott Bessent added to the positive momentum, stating that while negotiations with Beijing are likely to be a “slog,” he anticipates a gradual de-escalation in trade tensions.
“The roller coaster continues,” said Ryan Detrick, Chief Market Strategist at Carson Group in Omaha. “Some thawing of the aggression between the U.S. and China, thanks to Bessent’s comments, helped push things higher.”
“Washington understands that the uncertainty around tariffs is hurting markets,” Detrick added. “Maybe we can get some type of positive news going forward on the trade front.”
IMF Cites Tariff Impact in Growth Forecast
Ongoing trade uncertainties have had broader economic consequences. The International Monetary Fund recently downgraded its forecast for U.S. economic growth to 1.8% in 2025, citing the damaging effects of tariffs, which have reached levels not seen in a century.
Earnings Season in Focus
Meanwhile, the first-quarter earnings season is picking up pace, adding further momentum to the markets as investors assess the resilience of corporate America amid global challenges.
