Stocks opened higher in early trading Wednesday. The surge comes after Donald Trump backed off threats to fire the chairman of the Federal Reserve and showed a willingness to lower tariffs on China. Stocks continued to rally early Wednesday after Donald Trump backed off of threats to remove the chairman of the Federal Reserve and signals that tariffs on Chinese imports could be lowered in the weeks to come.

Ever since President Donald Trump introduced his first set of higher tariffs, it’s been a waiting game to see just how big an impact they’ll have on the global economy.

Trump’s tariffs are forecast to slow the global economy sharply this year, the International Monetary Fund said.

Donald Trump's tariffs have helped nudge Europe's central bank into cutting interest rates further—action the U.S. president has been demanding of the Federal Reserve. President Trump has heavily criticized the Fed for not cutting rates fast enough,