The New York stock market started strong on the 23rd (local time). It seems that the change in tone from President Donald Trump, who had previously threatened interest rate cuts and hinted at layoffs regarding Federal Reserve Chair Jerome Powell, had an impact.
According to the New York Stock Exchange (NYSE), as of 10:30 a.m. that day, the Dow Jones Industrial Average recorded 40,259.58, up 1,072.62 points (2.74%) from the previous trading day. The S&P 500 index jumped 167.08 points (3.16%) to 5,454.84, and the Nasdaq index was trading up 667.77 points (4.10%) at 16,968.19.
President Trump noted the previous day regarding the U.S.-China tariff negotiations that they are "going well" and stated, "The current tariff rate of 145% is too high. It will come down significantly." He also said about Powell, "I have no intention of firing him" and added, "I hope he becomes more proactive about the idea of interest rate cuts." While Trump hopes the Federal Reserve will induce a decline in government bond rates through interest rate cuts, Powell is cautious in light of the threat of stagflation.
By sector, American electric vehicle manufacturer Tesla recorded a 7.98% increase. Tesla Chief Executive Officer (CEO) Elon Musk's announcement that he would reduce his White House duties and focus on corporate operations starting next month positively impacted the stock price. Apple and Nvidia also rose by 3.98% and 5.58%, respectively.