Wall Street Rises as China Boosts Economic Support/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks rose Wednesday morning as China rolled out new economic stimulus measures ahead of high-level trade negotiations with the U.S. Investors were also encouraged by Disney’s strong earnings and subscriber growth, despite lingering tariff concerns. The Federal Reserve is expected to hold interest rates steady later today.
Wall Street Gains Amid China Stimulus Quick Looks
- S&P 500 up 0.4%, Dow Jones climbs 242 points.
- Nasdaq gains 0.3% in morning trading.
- Disney stock soars 9.9% after strong Q2 earnings and streaming growth.
- China cuts rates and boosts economy ahead of U.S. trade talks.
- U.S.-China tariffs remain high: 145% on Chinese imports, 125% on U.S. goods.
- Super Micro Computer drops 4.4% after trimming its revenue outlook.
- Federal Reserve expected to keep interest rates unchanged.
- 10-year Treasury yield edges down to 4.29%.
- European markets slip while Asian stocks rise.
Deep Look: Wall Street Rallies as China Stimulates Economy Ahead of Crucial Trade Talks
Wall Street started the day on a positive note Wednesday as investors responded to signs of economic stimulus from China and prepared for upcoming trade negotiations between the U.S. and Chinese officials. Major indexes posted early gains, led by optimism that the world’s two largest economies may be taking steps to ease mounting trade tensions.
By mid-morning, the S&P 500 rose 0.4%, the Dow Jones Industrial Average gained 242 points (0.6%), and the Nasdaq composite added 0.3%. The uptick reflects cautious optimism on both sides of the Pacific as China moves to bolster its economy, and U.S. markets look toward more clarity on interest rates and trade policy.
China announced plans to cut interest rates and implement further stimulus to help cushion the economic blow from the ongoing trade war. This announcement comes just days before U.S. officials meet a Chinese delegation in Switzerland for renewed trade talks. The meeting represents the first high-level diplomatic effort since President Donald Trump escalated tariffs earlier this year.
Trump’s aggressive trade stance has injected volatility into markets throughout 2025. Tariffs currently sit at 145% on Chinese imports to the U.S. and 125% on U.S. goods heading to China, a policy many companies warn is hurting consumer spending and operational forecasts.
One of the companies impacted is Super Micro Computer, which saw its shares fall 4.4% after reducing its revenue expectations for the year, citing ongoing economic uncertainty and unpredictable trade policy. Technology firms have been particularly exposed, given their reliance on global supply chains and sensitive pricing models.
Despite this uncertainty, Wednesday’s market surge got a major boost from The Walt Disney Company, which soared nearly 10% following a blockbuster earnings report. Disney beat profit expectations, raised its full-year outlook, and added over 1 million new streaming subscribers, signaling strong consumer engagement even as broader discretionary spending trends remain under scrutiny.
Disney’s performance reassured investors worried that tariffs and economic jitters might weaken consumer behavior across entertainment and travel sectors. The strong showing from one of the world’s largest entertainment brands helped buoy overall market sentiment.
Meanwhile, all eyes remain on the Federal Reserve, which is set to announce its latest decision on interest rates later today. Chair Jerome Powell and other central bank officials have indicated they will likely hold rates steady, at least temporarily, as they evaluate how tariffs are influencing inflation and broader economic performance.
Yields on government bonds stayed relatively flat. The 10-year Treasury yield edged slightly down to 4.29% from 4.30% the previous day, indicating steady investor confidence in fixed-income markets amid a changing macroeconomic landscape.
Outside the U.S., markets delivered a mixed performance. European indexes slipped, weighed down by weak corporate earnings, while Asian markets moved higher, buoyed by China’s policy announcements and a modest recovery in regional manufacturing data.
While optimism grows around potential progress in U.S.-China relations, uncertainty remains the dominant undercurrent. Companies and investors alike will be watching closely to see whether trade negotiations yield any long-term policy shifts—or merely a temporary pause in escalation.
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