Markets rally after Fed hints at cutting interest rates


The Federal Reserve is here to save the day — at least on Wall Street.
U.S. stocks had one of their best days of the year on Tuesday, The Wall Street Journal reports, despite the recent anxiety that has spilled over ever since President Trump has announced his latest tariff binge, which had previously sent stocks and bond yields into a bit of a tailspin. That's because Federal Reserve officials have hinted that the Central Bank could lower interest rates if the economy slows in response to the protectionism, alleviating some fears. Fed Chairman Jerome Powell said the agency is "closely monitoring" the implications of the tariffs and will "act as appropriate" to keep the economy afloat.
The market's rally also occurred after several Republican members of Congress said they do not support potential new tariffs on goods coming from Mexico, The Washington Post reports.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The Dow Jones Industrial Average jumped 512 points, or 2.1 percent, just two trading days after hitting its lowest point since late January. The S&P 500 rose 58.82 points, also 2.1 percent, while the Nasdaq Composite grew by 194.10 points, a 2.6 percent increase. It was the biggest one-day advance for all three indexes, the Journal reports.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.
-
5 darkly funny cartoons about Israel blocking aid to Gaza
Cartoons Artists take on forcing famine, avoiding aid, and more
-
The easy elegance of Cap Ferret
The Week Recommends 'Elemental and otherworldly' destination is loved for its natural beauty
-
Volodymyr Zelenskyy: flirting with authoritarianism?
Talking Point Ukraine's president is facing first major domestic unrest since the Russian invasion, over plans to water down the country's anti-corruption agencies
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement