Stocks closed solidly higher Wednesday, though well off their earlier highs, as investor concerns about tariffs and Federal Reserve independence eased following comments from President Donald Trump.

U.S. stocks climbed Wednesday, buoyed in part by President Donald Trump’s retreat on the prospect of firing Federal Reserve Chair Jerome Powell and the president’s indication that tariffs on China “will come down substantially but it won’t be zero.

Earlier this month, the Nasdaq Composite Index (NASDAQINDEX: ^IXIC), the S&P 500 (SNPINDEX: ^GSPC), and the Dow Jones Industrial Average (DJINDICES: ^DJI) fell more in one day than they had in years.

The US stock market experienced its biggest losses since 2020 after former President Donald Trump announced a series of global tariffs. The Dow Jones, Nasdaq, and S&P indexes plummeted, causing widespread concern about the economic ramifications.

President Donald Trump’s announcement of reciprocal tariffs has sent shockwaves through global markets, causing major US stocks to experience their biggest losses since 2020. The Dow Jones, Nasdaq, and S&P plunged within 24 hours of the announcement,