FX.co ★ US Stocks Ease Off Session Highs

On Wednesday, US stock markets retreated from their session peaks as investors reevaluated the potential for US-China trade relations to continue without the imposition of aggressive tariffs in the coming months. The S&P 500 and the Nasdaq 100 saw gains of 2% and 2.5% respectively, while the Dow climbed 500 points. Treasury Secretary Bessent emphasized that President Trump has not extended any unilateral offer to remove tariffs on China, and negotiations with China have yet to commence, casting doubt on the prospects for resolving trade tensions. This uncertainty followed the President’s remarks, suggesting that tariffs might not persist at the current rate of 145%, which had initially sparked a rally in equities, treasuries, and the dollar. In corporate news, Tesla's shares increased by 6.5% as CEO Elon Musk vowed to "significantly" reduce his involvement in government matters amid criticisms that he was overlooking Tesla's operations. The company reported underwhelming first-quarter results, with automotive revenue declining by 20% compared to the previous year. Meanwhile, Boeing's shares surged nearly 9% after the company reported a smaller-than-anticipated adjusted loss per share.