Major Indexes Surge as Trade Tensions Ease
As of midday Wednesday, April 23, 2025, U.S. stock markets are experiencing a significant rally, continuing the momentum from Tuesday’s rebound. The Dow Jones Industrial Average has climbed approximately 800 points, trading around 39,986, representing a gain of over 2% from yesterday’s close of 39,186.98.
This impressive rally comes after President Donald Trump indicated that tariffs on Chinese imports would be reduced “substantially” following a potential trade deal, signaling a possible de-escalation in the ongoing trade tensions between the world’s two largest economies.
Corporate Earnings Drive Individual Stock Movements
The first-quarter earnings season is in full swing, with several major companies reporting results today. AT&T (T) is trading up 2.6% despite missing earnings estimates, as the telecommunications giant posted better-than-expected revenue and reported an increase in phone subscribers.
Intel (INTC) shares have jumped 5.1% following the announcement that the semiconductor company plans to cut over 20% of its global workforce, a move aimed at streamlining operations amid ongoing challenges in the chip sector.
Vertiv Holdings (VRT) has surged nearly 18% after reporting first-quarter earnings and revenue that exceeded analyst expectations, along with raising its full-year sales guidance.
Several other major companies are scheduled to report earnings today, including Boeing (BA), Boston Scientific (BSX), CME Group (CME), General Dynamics (GD), and IBM (IBM).
Upcoming Market Events to Watch
Market participants are awaiting the release of the Federal Reserve’s Beige Book later today, which will provide insights into economic conditions across various regions of the United States.
Additionally, traders are monitoring the S&P flash U.S. services and manufacturing purchasing managers’ indexes (PMI), which will provide a snapshot of business activity in April.
Looking ahead to the remainder of the week, March new home sales data is expected tomorrow, with analysts forecasting a 0.7% month-over-month increase to 681,000 units. Thursday will bring the March capital goods new orders report and existing home sales figures, which are projected to decline by 2.8% to 4.14 million.
Global Market Response
International markets have responded positively to Wall Street’s gains and the potential easing of global trade tensions. Asian markets surged on Wednesday, with Hong Kong’s Hang Seng jumping 2.4% and Japan’s Nikkei adding 1.9%. European markets are also showing strong performance, with Germany’s DAX up 2.4%, France’s CAC 40 rising 2.1%, and London’s FTSE 100 advancing 1.3%.
Market Outlook
Despite today’s rally, the S&P 500 remains about 12% below its all-time high reached in February 2025, reflecting the impact of recent market volatility driven by trade uncertainties.
As trade negotiations continue and more earnings reports roll in, market participants will be closely monitoring whether this rally has staying power or if volatility will persist in the coming weeks.