The S&P 500 closed higher Wednesday, but well off session highs, as US Treasury Secretary Scott Bessent cooled some optimism on a quick resolution to the U.S.-China trade standoff.   

At 4:00 p.m. ET (21:00 GMT), the Dow Jones Industrial Average rose 450 points, or 1.2%, the S&P 500 index gained 1.6%, and the NASDAQ Composite climbed 2.5%.

Bessent cools quick U.S-China trade resolution

Bessent said there was no unilateral offer from President Donald Trump to lower China trade tariffs, adding doubt to an earlier Wall Street Journal report that suggesting Trump was willing to reduce the 145% tariffs on China. 

The remarks injected a sense of reality into the current U.S.-China trade standoff and suggest that the Trump administration could be waiting for China to make the first move. 

But China President Xi Jinping isn’t expected to cave in at the first offer of a trade truce from the Trump administration, FOX Business reported, citing unnamed CEOs with close ties to Chinese government.

This suggest the current trade standoff between the world’s two biggest economies could continue for a while longer, dampening earlier optimism for a quick resolution. 

On Tuesday, Trump that high tariffs on China will come down “substantially,” but “it won’t be zero.” 

Tesla rises as Musk vows to reduce DOGE activity

In the corporate sector, Tesla (NASDAQ:TSLA) stock jumped 6%, after the electric vehicle manufacturer reported first-quarter profits at its core auto business that were better than rock-bottom estimates.

Also contributing to the positive tone was the news that CEO Elon Musk plans to reduce the time he devotes to the Trump administration from next month and spend more time running the EV giant, especially amid slumping sales.

Elsewhere, Intel (NASDAQ:INTC) stock gained more than 5% after Bloomberg reported the chipmaker is set to unveil plans this week to slash more than 20% of its workforce, in a move to streamline operations and reduce bureaucratic inefficiencies.

Philip Morris (NYSE:PM) stock climbed more than 2% after the tobacco giant posted a solid first-quarter report, and raised its full-year 2025 earnings guidance.

Boeing (NYSE:BA) stock surged 6% after the aircraft manufacturer posted its first growth in quarterly revenue since 2023.

On the flip side, Enphase (NASDAQ:ENPH) stock slumped 15% after the energy technology company’s first-quarter results missed expectations, while the low end of its second-quarter revenue outlook also fell short.

(Peter Nurse, Ambar Warrick contributed to this article.)