The bounce in U.S. stocks gained momentum on Wednesday as the Trump administration turned down the heat on its trade war with China that has so rattled markets, while the president distanced himself from his own calls for the immediate termination of Federal Reserve chair Jerome Powell.

Major U.S. stock indexes rallied and the dollar stabilized, as investors welcomed comments from the White House on tariff negotiations.

U.S. stocks are rising as companies report fatter profits than expected, and other U.S. investments are also steadying themselves a day after sliding sharply on worries about President Donald Trump’s trade war and his attacks on the head of the Federal Reserve.