US stock indices rallied on Wednesday as concerns about the trade war calmed down, and following positive statements by US President Donald Trump about Fed Chair Powell.

The strong gains came after a report by the Wall Street Journal about Trumps plans to reduce tariffs on China from upwards of 245% to just 50%.

Trump admitted on Tuesday that current tariffs on China are too high and wont stay this way and will be reduced soon, but wont reach zero.

In another statement that calmed the markets, Trump said he doesnt intend to fire Fed Chair Jerome Powell, asserting hell let him complete his term until May 2026.

It comes after a series of heavy Trump attacks on Powell, describing him as a big loser and demanding he cuts interest rates immediately.

On trading, Dow Jones rallied 2.3% as of 14:21 GMT, or 900 points to 4086 points, while SP 500 added 2.6%, or 139 points to 5426 points, as NASDAQ surged 3.5% to 16,875 points.