In a market where moods change quicker than any TikTok dance trend, the faintest whisper from the White House is enough for initiating a rally. President Trump’s recent comments about reducing tariffs, although not to zero, is a much greeted shot of optimism for the market. It must not be considered as quite a happy ending, but it sure is a pleasant twist for now.

On Wednesday, Apple shares saw an increase of 3.2% in pre-market trading after Donald Trump hinted that tariffs on Chinese imports might be “substantially” reduced if negotiations with Beijing succeeded.  In statements delivered ahead of the trade discussions, Trump appeared less confrontational when addressing the press in Washington on Tuesday. He said about the tariffs on Chinese imports,

“It will come down substantially, but it won’t be zero”,

He also added that he is planning to be “very nice” to China during the talks. The comments represented a swing in tone from previous more hardline declarations and were welcomed by investors who hoped for less chaos in the U.S-China tariff dispute.

Markets Rally across the Globe

With less trade tensions in sight, the markets rallied across the board. On Tuesday, the S&P 500 and Nasdaq each rose more than 2.5% in one of the best sessions seen in recent weeks. It carried momentum to sweep into overseas markets as well. On Wednesday, Japan’s Nikkei 225 gained 1.9%, while in Europe, Germany’s DAX jumped to 2.4%, the FTSE 100 rose to 1.1%, and finally, France’s CAC 40 went up 1.9%.

Apple among Possible Beneficiaries

Apple has been perceived for a long time as among the most tariff exposed U.S tech companies, due to its highly integrated supply chain in China and large share of the market in that country. With shares already down more than 19% year-to-date, the stance of lowered trade barriers is, for Apple, a possible lifeline to margins and global operations. The ease of tariffs would relieve component costs for Apple and would also boost investor confidence given the company’s manufacturing outlook, particularly with regard to the approaching product cycles.

Trump Reaffirms Position of Fed Chair Powell

As Trump publicly criticized Federal Reserve Chair Jerome Powell for some days, he clarified that he has “no intention” of removing him, which further boosted the investor sentiment. This sound monetary policy leadership reassured jittery nerves in an already distressed interest rate market.

Beneath a revived optimism, the markets remain alert. Investors will look carefully for any solid progress in the next round of U.S.-China talks, as any hindrance could quickly erase gains sparked by Trump’s more peacemaking tone. For now, Apple and the general market seem to be relaxing a little.