US equity indexes soared after midday Wednesday as President Donald Trump de-escalated concerns about the Federal Reserve's independence and trade tensions with China, soothing frayed nerves.

The Nasdaq Composite surged 3.2% to 16,818.2, with the S&P 500 up 2.2% to 5,405.5 and the Dow Jones Industrial Average 1.6% higher at 39,823.7. Technology, consumer discretionary, and communication services led the gainers, while consumer staples posted the worst decline.

Trump said overnight that he had no plans to fire Fed Chair Jerome Powell after his criticism of the central bank chief for not lowering interest rates at the April monetary policy meeting contributed to the sell-off in US government bonds and the dollar.

The president also expressed optimism about improving trade relations with China. The 145% punitive import levy imposed on the country earlier in April sparked a surge in US Treasury yields while pushing the dollar to a three-year low as economists evaluated the potential detrimental impact on global growth.

Gold futures sank 3.1% to $3,313.32 per ounce, retreating from a record high of $3,509.90 touched intraday on Tuesday. The ICE US Dollar Index jumped 0.9% to 99.76, rebounding from a three-year low seen earlier this week intraday.

On Wednesday, US Treasury Secretary Bessent reportedly clarified that Trump is not planning to unilaterally retract tariffs that he had imposed on China while reminding investors that talks with the Asian powerhouse haven't begun yet.

US Treasury yields traded mixed, with the 10-year down 1.6 basis points to 4.38% after slumping to an intraday low of 4.26% earlier in the session. The two-year jumped 5.6 basis points to 3.84%.

Meanwhile, in economic news, the April flash reading of manufacturing conditions from S&P Global rose to a two-month high of 50.7 from 50.2 in March, compared with an expected decrease to 49 in a survey compiled by Bloomberg. The index's expansion contrasts with the regional manufacturing sector readings that indicate contraction.

US new-home sales rose to a 724,000 annual rate in March from a downwardly revised 674,000 rate in February, above the 685,000 rate expected in a survey compiled by Bloomberg. Home sales jumped 6% from a year ago, the US Commerce Department said in a report Wednesday.

In company news, Amphenol (APH) shares jumped 10% intraday, the top performer on the S&P 500, after the company reported higher year-over-year Q1 adjusted earnings and net sales, and its Q2 guidance was above market expectations.

Enphase Energy (ENPH) reported Q1 non-GAAP earnings and revenue that lagged analysts' estimates. Its shares slumped 14% intraday, the worst performer on the S&P 500.

Boeing's (BA) Q1 loss unexpectedly narrowed as revenue from commercial airplanes surged after deliveries increased, it said a day after announcing an asset sale worth almost $10.6 billion. Shares jumped 6.2% intraday, the top gainer on the Dow.

West Texas Intermediate crude oil futures slumped 2.5% to $62.11 a barrel.