WASHINGTON, D.C. – April 24, 2025 — U.S. stocks surged Wednesday following optimistic remarks from Treasury Secretary Scott Bessent, who suggested that a major breakthrough in U.S.-China trade relations could be on the horizon.

Speaking at an international economic forum, Bessent said he believes there is a real opportunity for a “big deal” with China, reigniting hopes that tensions between the world’s two largest economies may soon ease.

“The time is right for a comprehensive agreement that works for both sides,” Bessent said. “We’re seeing serious momentum.”

Investors reacted swiftly to the comments, with the Dow Jones Industrial Average and S&P 500 both posting gains as markets priced in the potential for renewed trade cooperation between Washington and Beijing. Relations between the two powers have been strained in recent years over tariffs, technology, and national security concerns.

In a wide-ranging speech, Bessent also took aim at global financial institutions, calling for the International Monetary Fund (IMF) and the World Bank to return to their core missions of promoting economic stability and development.

“The IMF and World Bank have lost focus,” he said. “It’s time to move away from vanity projects on climate change, gender, and social issues and back to the basics of economic reform, infrastructure, and job creation.”

The remarks drew sharp reactions across the global development community, with some praising the call for renewed financial discipline, while others criticized the dismissal of key global challenges such as climate resilience and social equity.

Bessent’s comments come as global markets watch closely for signs of de-escalation in U.S.-China trade dynamics, which have had far-reaching effects on supply chains, inflation, and global growth projections.

Further details on the potential trade agreement have not been disclosed, but diplomatic sources say negotiations are expected to accelerate in the coming weeks.