The Dow soared 1,016.57 points (2.7%) to 39,186.98, the Nasdaq spiked 429.52 points (2.7%) to 16,300.41 and the S&P 500 shot up 129.56 points (2.5%) to 5,287.76.
Stocks substantially moved downwards amid lingering trade war concerns and President Donald Trump's continued attacks on Federal Reserve Chair Jerome Powell. Further buying interest was generated in reaction to reports indicating Treasury Secretary Scott Bessent told a closed-door investor summit he expects the trade dispute between the U.S. and China to de-escalate. Citing people who attended the session at an event hosted by JP Morgan Chase (JPM), Bloomberg reported Bessent said negotiations haven't started but that a trade deal with China is possible.
The markets also benefited from a positive reaction with shares of 3M (MMM) soaring by 8.1% after the manufacturing conglomerate reported better than expected first quarter results. Aircraft engine supplier GE Aerospace (GE) also spiked by 6.1% after reporting first quarter earnings that exceeded analyst estimates. Electric vehicle maker Tesla (TSLA) which is among the companies due to report their quarterly results after the close of today's trading, also shot up by 4.6%.
Housing stocks substantial moved upwards, driving the Philadelphia Housing Sector Index up by 3.7%. Financial stocks were significantly strong with the NYSE Arca Broker/Dealer Index and the KBW Bank Index surging by 3.4% and 3.3%, respectively. Retail, biotechnology and oil producer stocks displayed considerable strength while gold stocks were among the few groups to buck the uptrend amid a pullback by the price of the precious metal.
Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index dipped by 0.2%, while China's Shanghai Composite Index rose by 0.3%. The major European markets all moved higher over the course of the session. While the German DAX Index increased by 0.4%, the French CAC 40 Index and the U.K.'s FTSE 100 Index both climbed by 0.6%.
In the bond market, treasuries saw modest strength after ending the previous session firmly negative. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down 1.6 bps to 4.38%.