U.S. stocks made big gains amid clear signs of relief Wednesday after President Donald Trump said he would not attempt to fire the head of the Federal Reserve and his Treasury Secretary Scott Bessent said he expects a “de-escalation” in what he called an unsustainable tariffs showdown against China.
“There is an opportunity for a big deal here,” Bessent said in a Wednesday morning speech.
China, meanwhile, said the Trump administration should stop trying to bully and blackmail its trading partner, and some on Wall Street expressed skepticism that Trump is done testing the limits of bellicose rhetoric on trade.
Two major law firms will be in court asking judges on Wednesday to permanently block Trump’s executive orders that are designed to punish them and hurt their business operations.
And U.S. partners are taking stock of Secretary of State Marco Rubio 's plans for a massive overhaul of the State Department including closing or consolidating more than 100 bureaus worldwide.
Here's the Latest:
White House press secretary says Trump’s ‘frustration’ with Ukraine-Russia war is ‘growing’
Karoline Leavitt’s comments followed Trump excoriating Ukrainian President Volodymyr Zelenskyy on Tuesday for saying ceding Russian-occupied Ukrainian land as part of a potential peace deal is a non-starter.
“What he is asking is for people to come to the negotiating table, recognizing that this has been a brutal war for far too long,” Leavitt said of Trump’s frustration. “And in order to make a good deal, both sides have to walk away a little bit unhappy, and unfortunately, President Zelenskyy has been trying to litigate this peace negotiation in the press, and that’s unacceptable to the president.”
Trump to visit Michigan on his 100th day in office
A Federal Aviation Administration notice posted Wednesday indicates Trump will travel on April 29 to an area north of Detroit, home to Selfridge Air National Guard Base — a facility that has been the focus of multiple discussions with Michigan Gov. Gretchen Whitmer since Trump took office.
The visit is set for the day that marks Trump’s 100th day in office, an early benchmark where presidents’ accomplishments are typically measured against their promises.
Whitmer and other Michigan lawmakers have been pushing to keep the base open as its A-10 squadron is being phased out. According to her office, Whitmer raised the issue with the president earlier this month, when she was also unexpectedly brought into the Oval Office during one of his press conferences.
In response to a request for comment on whether the Michigan governor would be joining Trump, Whitmer’s office said “they don’t have anything to share at this time.”
Trump hangs new headshot of himself between first lady portraits
Revealed in a social media post by first-year Rep. Jimmy Patronis, a Florida Republican, the image of Trump features the red, white and blue of an American flag superimposed over the president’s headshot on a black background.
It’s hanging on the ground floor between the official portraits of former first ladies Laura Bush and Hillary Clinton.
The White House confirmed that the image is real.
Trump recently hung a portrait depicting the aftermath of the assassination attempt in Pennsylvania last year in the spot in the foyer where Barack Obama’s official portrait used to hang.
Obama’s likeness is now on the opposite side of the entrance.
UN chief says the clean energy revolution will not be stopped
The United Nations chief has a message for President Trump and other supporters of fossil fuels: “No group or government can stop the clean energy revolution.”
Secretary-General Antonio Guterres told reporters after a meeting Wednesday with 17 global leaders on climate action that there was wide support for renewable energy whose prices have plummeted.
In the United States, he said, the private sector has taken “very dynamic action” supporting renewables which are cheaper than fossil fuels. So, the U.S. needs to be viewed not only by the position of its leader but in the complexity of its society and market-driven economy.
Trump accuses Zelenskyy of prolonging war for refusing to cede Crimea to Russia
Trump is accusing Ukrainian President Volodymyr Zelenskyy of prolonging the “killing field” after he pushed back on ceding Crimea to Russia as part a potential peace plan.
Ahead of high-level talks set for Thursday among U.S., European and Ukrainian officials in London, Zelenskyy said of ceding territory to Russia: “There is nothing to talk about — it is our land, the land of the Ukrainian people.”
“This statement is very harmful to the Peace Negotiations with Russia in that Crimea was lost years ago under the auspices of President Barack Hussein Obama, and is not even a point of discussion,” Trump wrote on Truth Social on Wednesday. “Nobody is asking Zelenskyy to recognize Crimea as Russian Territory but, if he wants Crimea, why didn’t they fight for it eleven years ago when it was handed over to Russia without a shot being fired?”
Vance said it’s “pretty crazy” that he was one of the last officials to meet with Pope Francis
The vice president told reporters that he “obviously” did not know when he met with Francis that he’d be dead within less than 24 hours, but said it was “a great blessing” to meet with him.
“I try to just, you know, remember that I was lucky that I got to shake his hand and tell him that I pray for him every day, because I did and I do,” he said.
Vance family has a private tour of Taj Mahal in triple-digit heat
Vice President JD Vance and his family had a private tour of the Taj Mahal on Wednesday.
Vance’s young children could be heard complaining about the heat, which reached 100 degrees Fahrenheit.
The vice president was asked about the temperature as his family stood on the balcony of the Taj Mahal and Vance laughed and said, “It feels good.”
Hegseth rebuffs claims of chaos at the Pentagon, calls it overdue change
Coming off a week of escalating personal and staff turmoil, Defense Secretary Pete Hegseth rebuffed charges of chaos at the Pentagon, telling Army officers Wednesday that change is good.
Speaking at the U.S. Army War College in Carlisle, Pennsylvania, Hegseth acknowledged there has been a lot of change very quickly.
“The media likes to call it chaos. We call it overdue,” said Hegseth, as he ticked off a list that included efforts to cut personnel and programs, dump “climate change worship,” gender confusion, quotas and so-called “woke” policies that promote diversity and equity.
Hegseth, however, did not mention the ongoing purge of senior military officers and his own top staff that has left the Pentagon reeling, or the new reports that he shared sensitive military operation details in another Signal messaging chat, this time with his wife and brother.
He has not specifically denied the second chat, but has asserted that no classified has been shared and blamed it on the media and disgruntled “leakers.”
He said President Donald Trump had warned him that he’d have to be tough to do the Pentagon job.
“He was not kidding,” Hegseth said. “This job requires a steel spine.”
US stocks are leaping amid a worldwide rally
The S&P 500 was 2.6% higher in midday trading, coming off a big gain Tuesday that more than made up for its steep loss on Monday. The Dow Jones Industrial Average was up 848 points, or 2.2%, as of 11:20 a.m. Eastern time, and the Nasdaq composite was 3.6% higher.
Investors are responding to Trump’s apparent pivot from his criticism of the Federal Reserve and his tough talk in his trade war.
Wall Street’s gains followed strong moves higher for stocks across much of Europe and Asia. They also continue a dizzying, up-and-down run for financial markets as investors struggle with how to react to so much uncertainty about what Trump will do with his economic policies. The S&P 500 remains 11.7% below its record set earlier this year after briefly dropping roughly 20% below the mark.
▶ Read more on today’s market movements
Dick Durbin of Illinois, the Senate’s No. 2 Democrat, won’t seek reelection
Sen. Dick Durbin of Illinois said Wednesday that he will not seek reelection after more than four decades representing Illinois, piling more pressure on Democrats trying to reclaim a Senate majority.
Durbin’s decision will set off a scrum of would-be successors, both Democratic and Republican, in a state that has grown more blue.
Now 80, Durbin was first elected to the U.S. House in 1982 and served seven terms before succeeding his mentor, Paul Simon, in the Senate in 1996. He helped shape the career of an up-and-comer, Barack Obama, and among his more significant legislative achievements, he is largely credited with efforts to ban indoor smoking.
▶ Read more of the AP’s coverage of Durbin
Trump says ‘everything’s active’ when asked about China trade talks
Trump was asked by reporters if he’s actively talking with China about a trade deal.
“Everybody wants to be a part of what we’re doing,” he said, adding: the U.S. will have “a fair deal with China.”
The president spoke after a surprise appearance Wednesday on the North Lawn, on the Pennsylvania Avenue side of the White House, where he said he's installing two “beautiful” flagpoles, “paid for by Trump.”
“They’ve needed flagpoles for 200 years,” he said.
A U.S. flag and a POW/MIA flag are flown daily from a pole on the White House roof. Trump said the new flagpoles will arrive in about a week and would fly the U.S. flag.
Bessent dismisses WSJ report on talk about slashing import taxes on Chinese goods
During a roundtable discussion with reporters, Bessent said he was unaware of internal administration conversations about slashing Trump’s tariffs on China.
“I’d be surprised if that discussion is happening,” he said.
The Wall Street Journal reported earlier in the day that the tariffs could be cut in half, citing unnamed people familiar with the matter.
However, Bessent said he expects “there’d have to be a deescalation” from Washington and Beijing’s trade confrontation.
Amid economic uncertainty, railroads still chugging along — for now
If consumers start to spend less or big manufacturers cut production in response to Trump’s trade war, a slowdown would soon be evident on the railroads, which handle shipments for every sector of the economy. But so far the nation’s biggest railroads haven’t seen a drop since his tariffs were announced.
Norfolk Southern said Wednesday that it is watching shipments closely, but the railroad’s customers haven’t pulled back yet, echoing what CSX said in its first-quarter earnings report.
“There’s no way to predict where we go right now. We’re in a really uncertain spot,” Norfolk Southern CEO Mark George said. “We haven’t seen negative trends yet that really alarm us.”
▶ Read more about major U.S. railroads earnings
Bessent says China needs to be treated like an ‘adult economy’
The U.S. Treasury secretary wrapped up his speech in Washington with a question and answer session that touched extensively on China.
Bessent said the world’s second largest economy should not be treated like a developing country.
“I have a teenager who sometimes wants to be treated like a child, sometimes wants to be treated like an adult,” he said. When it comes to China, “it’s an adult economy.”
Bessent said earlier in his speech to the Institute of International Finance in Washington that despite friction between Beijing and Washington, “there is an opportunity for a big deal here” between the world’s two biggest economies.
He said the administration wants to boost U.S. manufacturing while China increases domestic consumption, making its economy less reliant on flooding the globe with cheap exports.
“If they want to rebalance, let’s do it together,” he said. “This is an incredible opportunity.”
China insists on ‘equality, respect’ for any tariff talks
Beijing said Wednesday that “exerting pressure is not the right way to deal with China and simply will not work.”
Trump said he would not “play hardball” with China and that his tariffs would come down “substantially” but the U.S. will “set the deal” if China doesn’t make a deal.
In response, Chinese foreign ministry spokesman Guo Jiakun said the U.S. “should stop threatening and blackmailing China” but “seek dialogue based on equality, respect and mutual respect.”
Bessent meanwhile said the U.S. is helping China to change its economic model, which he said is built on “exporting its way out of its economic troubles” and is “an unsustainable model that is not only harming China but the entire world.”
Will Trump deescalate his trade war with China? Some are skeptical
“We have to see it to believe it,’’ said Beata Caranci, chief economist at TD Economics. It’s not just Beijing — the Trump administration will have to make progress in negotiations to ease tensions with the European Union, Japan, Canada and Mexico as well, she said.
“The next 90 days are really crucial for the administration to lock down the big stakeholders ... They’re going to have to show that it’s not just talk and that they’re going to get results.’’
And given Trump’s unpredictable reversals on trade policy, she said other countries will seek guarantees that he won’t simply impose new tariffs after they’ve reached an agreement.
Treasury Secretary targets global financial institutions
Bessent criticized the International Monetary Fund and the World Bank in a speech on Wednesday morning, saying “Mission creep has knocked these institutions off course.”
According to his prepared remarks, Bessent will criticize the IMF for devoting “disproportionate time and resources to work on climate change, gender, and social issues.”
He also said the IMF should be more aggressive in confronting China for its “globally distortive policies.”
When it comes to the World Bank, Bessent planned to say that there should not be any “blank checks for vapid, buzzword-centric marketing accompanied by half-hearted commitments to reform.”
Marguerite Casey Foundation dips into its endowment to grant out $130 million this year
The Seattle-based foundation announced it would significantly increase its grantmaking this year to help nonprofits respond to policy changes from the Trump administration.
It is the latest foundation to increase its giving to help grantees and communities cope with federal funding cuts and to respond to threats to the independence of civil society organizations.
“We’re doing this very specifically to ensure that organizations across our country have the full weight of our resources to serve communities that are actively under attack from the administration,” said Ian Fuller, chair of the foundation’s board.
Foundations have also taken other steps, like advocating to protect the freedom of donors to give and of nonprofits to pursue their missions.
▶ Read more on how foundations are helping nonprofits under attack
Eyeing Trump, leading automakers showcase designed-for-China models at Shanghai auto show
They’re struggling not to be edged aside in the world’s largest car market while watching for Trump’s next steps in his trade war.
Three decades after Beijing set out to build a world-class auto industry, local manufacturers account for about two-thirds of sales inside China and a growing share of global exports. Meanwhile, higher U.S. and European tariffs on foreign-made EVs are prompting some to set up factories overseas as more global consumers opt for the latest Chinese models.
GM, Ford, Toyota and VW are still trying to sell new vehicles in China. But it’s “survival of the fittest,” one analyst says.
Chinese electric vehicle maker BYD now leads Tesla as the world’s biggest maker of EVs by sales, reporting revenue of over $100 billion. It says it plans to build more than 4,000 of its new ultra fast EV charging stations across China, providing full charges in five to eight minutes.
Markets rally after Trump eases concerns over tariffs and says he won’t try to fire Fed Chair Powell
A worldwide rally is coming back around to Wall Street amid encouraging updates from Trump about his plans for the Federal Reserve and his trade war.
The S&P 500 was 2.6% higher in early trading Wednesday. The Dow Jones Industrial Average was up 2%, and the Nasdaq composite was 3.5% higher.
Tesla helped lead the way by revving 4.3% higher after CEO Elon Musk said he’ll spend less time in Washington and more time running his electric vehicle company. Tesla shares rose 7% before the opening bell Wednesday.
Wall Street’s gains followed strong moves higher for stocks across much of Europe and Asia.
Black churches pledge to support the National Museum of African American History and Culture
They’re taking action after Trump signed an executive order alleging exhibits there and at other Smithsonian Institution sites have expressed a “divisive, race-centered ideology.”
Critics say Trump is trying to force a distorted national narrative that glosses over slavery and other historical wrongs. Some churches are donating as members of the museum and urging congregants to do the same.
The Rev. Robert Turner recently walked from Baltimore to Washington and prayed at the museum entrance. He marches to Washington one day each month to call for reparations for historic wrongs inflicted on Black Americans. Turner added the museum to his itinerary this month and laid a wreath “to show solidarity with the museum” and the history it presents every day.
▶ Read more about how Black churches are defending the African American museum
International students stripped of legal status in the US are piling up wins in court
At least 1,100 international students at 174 colleges, universities and university systems have had their visas revoked or their legal status terminated since late March, according to an Associated Press review of university statements, correspondence with school officials and court records. The AP is working to confirm reports of hundreds more students caught up in the crackdown.
Rubio said the State Department was revoking visas held by visitors acting counter to national interests, including some who protested Israel’s war in Gaza and those who face criminal charges. But many affected students said they have been involved only in minor infractions, or it’s unclear altogether why they were targeted.
Federal judges around the country have issued orders to restore students’ legal status at least temporarily. Some other judges have denied similar requests.
▶ Read more about legal challenges to the student visa revocations
Book publishers respond to surging interest in the US Constitution by printing new editions
The Trump administration is inspiring many people to read up on the nation’s founding documents.
Random House announced Wednesday that will publish a hardcover book in July combining the Declaration of Independence and the U.S. Constitution, followed in November by a hardcover edition of the Federalist Papers, both with introductions by Pulitzer Prize-winning historian Jon Meacham. Other publishers have similar plans as interest surges, according to Circana, which tracks the print retail market.
“One way to address the chaos of the present time,” Meacham said, “is to re-engage with the essential texts that are about creating a system that is still worth defending.”
▶ Read more on interest in the United States’ founding documents
Markets bounce after Trump says he won’t try to fire Fed Chair Powell
U.S. markets are poised to open with big gains, a clear sign of relief after Trump said he won’t try to fire the head of the Federal Reserve and Treasury Secretary Scott Bessent said he expects a “de-escalation” in Trump’s trade war.
Futures for the Dow Jones Industrial Average jumped 1.9% before the bell Wednesday, while S&P 500 futures rose 2.6%. Nasdaq futures climbed a full 3%.
Trump, upset that the Federal Reserve was not cutting interest rates immediately, said that he could fire Fed Chair Jerome Powell. But he told reporters Tuesday, “I have no intention of firing him.”
Markets are also reacting to Bessent’s comments that the ongoing tariffs showdown with China is unsustainable.
Rubio's massive State Department overhaul would cut staff and bureaus
Democrats blasted the reorganization plan announced by Rubio on social media Tuesday and detailed in documents obtained by The Associated Press as the Trump administration’s latest attempt to gut “vital components of American influence” on the world stage.
Rubio 's overhaul would reduce staff in the U.S. by 15% while closing and consolidating more than 100 bureaus worldwide, reimagining foreign policy as Trump cuts the size of the federal government. It's driven in part by the need to find a new home for the remaining functions of the U.S. Agency for International Development, an agency that Trump administration officials and billionaire ally Elon Musk’s Department of Government Efficiency have dismantled.
“We cannot win the battle for the 21st century with bloated bureaucracy that stifles innovation and misallocates scarce resources,” Rubio said in a department-wide email obtained by AP. He said the reorganization aimed to “meet the immense challenges of the 21st Century and put America First.”
▶ Read more about Rubio’s plan to overhaul the department
Law firms fighting Trump to ask judges to permanently block executive orders
Two major law firms are expected to ask separate judges on Wednesday to permanently block Trump’s executive orders that were designed to punish them and hurt their business operations.
The firms — Perkins Coie and WilmerHale — have said the orders imposed in March are unconstitutional assaults on the legal profession that threaten their relationships with clients and retaliate against them based either on their past legal representations or their association with particular attorneys who Trump perceives as his adversaries.
Courts last month temporarily halted enforcement of key provisions of both orders, but the firms are in court Wednesday asking for the edicts to be struck down in their entirety and for judges to issue rulings in their favor. Another firm, Jenner & Block, is expected to make similar arguments next week.
The executive orders taking aim at some of the country’s most elite and prominent law firms are part of a wide-ranging retribution campaign by Trump designed to reshape civil society and extract concessions from perceived adversaries.
▶ Read more about the law firms’ request to the judges
US Treasury secretary says trade war with China is not ‘sustainable’
Treasury Secretary Scott Bessent said in a Tuesday speech that the ongoing tariffs showdown against China is unsustainable and he expects a “de-escalation” in the trade war between the world’s two largest economies.
Scott Bessent, President-elect Donald Trump’s choice to be secretary of the Treasury, appears before the Senate Finance Committee for his confirmation hearing, at the Capitol in Washington, Thursday, Jan. 16, 2025. (AP Photo/J. Scott Applewhite)
But in a private speech in Washington for JPMorgan Chase, Bessent also cautioned that talks between the United States and China had yet to formally start.
“I do say China is going to be a slog in terms of the negotiations,” Bessent said according to a transcript obtained by The Associated Press. “Neither side thinks the status quo is sustainable.”
The S&P 500 stock index rose 2.5% after Bloomberg News initially reported Bessent’s remarks.
Trump acknowledged the increase in the stock market in remarks to reporters afterward on Tuesday, but he avoided confirming if he, too, thought the situation with China was unsustainable as Bessent had said behind closed doors.
▶ Read more about Bessent’s comments
The Associated Press
