The Dow Jones Industrial Average shot up Tuesday on news of prospective trade deals getting close and that tensions between the U.S. and China may be easing.
The Wall Street Journal reported that the DJIA soared 1,017 points, or 2.7 percent.
Meanwhile, the Nasdaq was up 2.7 percent and the S&P 500 added 2.5 percent.
The Dow Jones closed at approximately 39,187. That came after a fall of nearly 1,000 points Monday, based on trade concerns.
The market is still down from its 42,225 high before Trump announced his reciprocal tariff plan April 2. He has since placed the tariffs on a 90-day pause, while trade deals are negotiated.
China has been the top supplier of imported goods to the U.S., accounting for 16.5 percent of the total in 2022, according to the Office of the U.S. Trade Representative. Mexico, Canada, Japan, and Germany round out the top five.
JUST IN: 🇺🇸 $1.5 trillion added to the US stock market today. pic.twitter.com/1KGVHKFFDX
— Watcher.Guru (@WatcherGuru) April 22, 2025
CNBC reported that Treasury Secretary Scott Bessent told investors during a closed-door meeting Tuesday that he expects “there will be a de-escalation” in President Donald Trump’s trade scuffle with China in the “very near future.”
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“No one thinks the current status quo is sustainable” with tariff rates at their current levels, Bessent added during a private investor summit hosted by JPMorgan Chase in Washington, D.C.
He acknowledged that there is, in effect, a trade embargo between the U.S. and China, given the high tariffs each country has placed on the other.
According to the Peterson Institute for International Economics, the U.S. tariff on Chinese imports is 124.1 percent, while the Chinese tariff on U.S. exports is 147.6 percent.
Earlier this month, Trump exempted smartphones, computers, and some other electronics from steep tariffs, but has kept the 20 percent fentanyl-related tariffs on all Chinese imports, according to Reuters.
White House press secretary Karoline Leavitt told reporters Tuesday that she spoke with Trump regarding trade talks.
“We’re doing very well in respect to a potential trade deal with China,” she said. “As I mentioned, there have now been 18 proposals and more than 100 countries around the world, who are wanting to make a deal with the United States of America, and the president and the administration are setting the stage for a deal with China.”
“We’re doing very well in respect to a potential trade deal with China,” says @PressSec.
“We feel everyone involved wants to see a trade deal happen — and the ball is moving in the right direction.” pic.twitter.com/GfsGBOzaWJ
— Rapid Response 47 (@RapidResponse47) April 22, 2025
She concluded, “We feel everyone involved wants to see a trade deal happen, and the ball is moving in the right direction.”
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