Dow jumps over 1,100 points as tariff fears ease — but rally loses steam

US stocks extended their gains on Wednesday morning after President Trump backtracked on threats to fire Fed Chair Jerome Powell and signaled trade deals with lower tariff rates are in the works.

The Dow Jones Industrial Average jumped more than 1,100 points before paring gains. The blue-chip index closed up 419.59 points, or 1.1%, after surging 1,016.57 points the day before, breaking a four-day losing streak.

The S&P 500 and Nasdaq rose 1.7% and 2.5%, respectively.

On Tuesday evening, Trump said he had “no intention” of firing Powell, whose term as the nation’s top central banker expires in May 2026.

Just the day before, the president called Powell “a major loser” for not slashing interest rates, mocking the policymaker with the nickname “Mr. Too Late” — which sent the Dow sliding for a 970-point loss on Monday.

Trump wrote in a Truth Social post that “Powell’s termination cannot come fast enough.”

The president also gave investors hope for lower import taxes on China, which is facing a steep 145% rate — threatening to send prices soaring on goods like electronics, toys and clothing.

The 145% rate on China is “very high, and it won’t be that high … No, it won’t be anywhere near that high. It’ll come down substantially,” Trump said.