U.S. stocks rallied in early trading on Wednesday, one day after President Donald Trump said tariffs on China would “come down substantially.”

Trump also appeared to soften previous attacks on the Federal Reserve, saying late Tuesday he has “no intention” of firing top central banker Jerome Powell.

The Dow Jones Industrial Average jumped 625 points, or 1.6%, while the S&P 500 climbed 2.5%. The tech-heavy Nasdaq increased 3.4%.

Shares of electric carmaker Tesla surged 6.5% in the first trading since CEO Elon Musk said his time devoted to the Department of Government Efficiency would “drop significantly” next month, paving the way for his return to the company.

Musk described his work at DOGE as necessary, but he said that “working for the government to get the financial house in order is mostly done.”

Earlier this month, Trump hiked tariffs on Chinese goods to a total of 145%, prompting China to respond with 125% levies on U.S. products.

The tit-for-tat measures escalated a trade war between the world’s two largest economies, but the White House this week appeared to signal a desire to ease the tensions.

Treasury Secretary Scott Bessent reportedly told a group of investors on Tuesday that “over the very near future, there will be a de-escalation” of the trade war with China. Bloomberg News first reported the remarks.

Bessent’s comments, which came at a private JPMorgan event, sent stocks climbing on Tuesday afternoon. Trump echoed the sentiment hours later.

“145% is very high and it won’t be that high,” Trump told reporters at the White House late Tuesday. “It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero.”

This is a developing story. Please check back for updates.