The hope along Wall Street has been that Trump would lower his tariffs after negotiating trade deals with other countries, and Trump said Tuesday he would be “very nice” to the world’s second-largest economy and not play hardball with Chinese President Xi Jinping.

Wall Street's main indexes rallied at the open on Wednesday after U.S. President Donald Trump dialed back on his threats to fire Federal Reserve Chair Jerome Powell and raised hopes for a trade deal with China.

The S&P 500 was 2.9% higher in early trading, coming off a big gain Tuesday that wiped out a loss that was nearly as big on Monday. The Dow Jones Industrial Average was up 967 points, or 2.5%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 3.7% higher.