Thanks to Trump's 'flip-flop'... S&P500 up 3%, Nasdaq up 3.9%

Relief from concerns about the Fed and expectations for improved Sino-American relations

10-year U.S. Treasury yield plummets by 13bp

Apple, Nvidia, Tesla and other China-related tech stocks rise sharply

Thanks to President Trump's change of stance, the New York Stock Exchange surged on the 23rd (local time). President Trump had been threatening and criticizing Jerome Powell, Chairman of the Federal Reserve Board, to lower interest rates and hinted at firing him, but stated that he had no plans to dismiss him. He also suggested that the 145% tariff on China would be lowered after negotiations.

As of 10:05 a.m. Eastern Standard Time, the Dow Jones Industrial Average rose by 2.%. The S&P500 index, which focuses on large-cap stocks, surged by 3.0%, and the Nasdaq Composite Index, which focuses on tech stocks, soared by 3.9%.

Concerns about Chairman Powell and the Fed were alleviated, leading to a rise in most bonds. The 10-year U.S. Treasury yield plummeted by 13 basis points (1bp=0.01%) to record a strong 4.27%. The dollar index rebounded from its lowest level in 16 months, showing stability. As demand for safe assets decreased, gold prices, which had hit an all-time high the previous day, fell. Bitcoin surpassed $90,000 for the first time since March.

Chinese-related stocks, which had been on a downward trend in recent weeks, rose on expectations of easing U.S.-China trade tensions. Apple rose by 3.5%, Nvidia by 6%. Tesla, despite poor performance the previous day, rose by 4.4% to $248 as CEO Elon Musk mentioned significantly reducing his working hours from next month.

SAP, Europe's largest company, rose by the largest margin in six years as its profits exceeded expectations.

Following Treasury Secretary Scott Besant the previous day, President Trump also showed moves to ease U.S.-China tensions, leading to a rise in global stock markets from Asia to Europe.

Bloomberg pointed out that Wall Street is betting that Trump, the 'master of disruption,' will gradually back down from the tariff war as warnings of a $10 trillion (₩14,200 trillion) stock market crash and recession continue this year.

Francois Limoux, a strategist at La Francaise AM in Paris, noted, "I thought the possibility of Powell's dismissal was extremely low, but the softened tone on China gave the market relief." Nevertheless, he emphasized, "Investors should prepare for U.S. tariffs at a level the global economy can handle in three months."

Guest reporter Kim Jung-ah kja@hankyung.com