Why is the ASX 200 roaring higher today?

ASX 200 investors have good reason to celebrate today.

| More on:
Man smiling at a laptop because of a rising share price.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

It's a great day on the S&P/ASX 200 Index (ASX: XJO) today.

At the time of writing, the benchmark Aussie index is up 1.6% at 7,939.1 points.

ASX 200 uranium stock Paladin Energy Ltd (ASX: PDN) is leading the charge, with shares up 21.6% following this morning's strong quarterly production update.

As for the biggest company on the ASX, Commonwealth Bank of Australia (ASX: CBA) shares broke into new all-time high territory in earlier trade today at $168.70 each. Shares have since given back those gains to be down 0.8% at the time of writing.

Meanwhile, the BHP Group Ltd (ASX: BHP) share price is up 3.0%, while shares in biotech giant CSL Ltd (ASX: CSL) are up 1.9%.

So, why is the ASX having such a stellar run today?

What's boosting the ASX 200 on Wednesday?

On the domestic front, the benchmark index is getting a boost from a few strong outperformers today, including Paladin Energy and Telix Pharmaceuticals Ltd (ASX: TLX), with Telix shares up 9.2% at the time of writing.

But, once again, a lot of today's big moves on the ASX 200 come thanks to United States President Donald Trump.

As you're likely aware, Trump's often shifting global tariff campaign and war of words with US Federal Reserve chairman Jerome Powell have alternately battered and then lifted global stock markets.

And today is no different.

The ASX 200 is following the lead of US markets, where the Nasdaq Composite Index (NASDAQ: .IXIC) closed up 2.7% overnight while the S&P 500 Index (SP: .INX) ended the day up 2.5%.

Elon Musk's Tesla Inc (NASDAQ: TSLA) regained some lost ground, closing up 4.6%, and shares in generative AI chip maker Nvidia Corporation (NASDAQ: NVDA) gained 2.1%.

Investors celebrate as Trump tones down rhetoric

Just as Trump can tank global stock markets and the ASX 200 with a few hardline words, he can also lift those markets back up with a little backpedalling.

The sizeable rally in US and Aussie stocks followed Trump's announcement that he did not intend to fire Powell, as previously hinted, and that he was willing to negotiate far lower tariff levels in trade talks with China.

Commenting on Trump's softer tone on Powell, Mark Hackett, chief market strategist at Nationwide, said (quoted by Bloomberg):

This is very good news from a markets perspective because the alternative was really, really painful. It would be challenged, it would be ugly, the market would lose confidence. We need the Fed to have the appearance of impartiality.

On the China trade war front, investor sentiment was buoyed by comments from US Treasury Secretary Scott Bessent. Bessent said the 145% tariffs the US had imposed on Chinese imports and the 125% reciprocal tariffs China imposed on US imports were not sustainable. Trump appeared to agree, saying the US would "be very good to China".

With another strong day of gains, the ASX 200 is now up 8.2% from its recent lows on 2 April. The index remains down 7.2% from the all-time closing highs posted on 14 February.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Nvidia, Telix Pharmaceuticals, and Tesla. The Motley Fool Australia has recommended BHP Group, CSL, Nvidia, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A woman sits at her home computer with baby on her lap, and the winning ticket in her hand.
Consumer Staples & Discretionary Shares

How much upside does Macquarie expect for Lottery Corporation shares?

This ASX 200 stock has proven resilient through various economic conditions.

Read more »

ASX 200 retail shares a woman smiles over the top of multiple shopping bags she is holding in both hands up near her face.
Opinions

Up 90% in a year, is it too late to buy Zip shares?

Should investors buy this stock now or wait until later?

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Share Market News

5 things to watch on the ASX 200 on Friday

It looks to be a poor finish to the week for Aussie investors.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Broker Notes

Guess which ASX 300 stock was downgraded to sell today

Bell Potter has become bearish on this stock. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX gave up an afternoon lead to close lower today.

Read more »

a gas worker with hard hat and high visibility vest stands cross armed and smiling in front of an elaborate steel structured gas plant.
Share Market News

Morgans names 2 ASX energy shares to buy now

These shares could be top picks for investors with a high tolerance for risk.

Read more »

Young businesswoman sitting in kitchen and working on laptop.
Broker Notes

Is the ResMed share price still cheap? What the numbers say

Let's see what analysts are saying about this blue chip as it nears a 52-week high.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Broker Notes

What does Macquarie think REA shares are worth?

Top broker Macquarie has reviewed its rating and price target on REA shares.

Read more »