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.

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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.