US equity indexes rebounded after midday Tuesday, led higher by technology, amid reported comments from Treasury Secretary Scott Bessent that the China trade tariff stand-off is unsustainable.

The Nasdaq jumped 2% to 16,192.5, with the S&P 500 up 1.7% to 5,244.7 and the Dow Jones Industrial Average 1.8% higher at 38,844.9. All sectors rose intraday, with technology, consumer discretionary, and communication services among the top gainers.

The strong intraday gains follow Monday's steep declines, coinciding with renewed criticism by President Donald Trump of Jerome Powell, the chairman of the Federal Reserve, as he called for interest-rate cuts. The losses also followed a warning from China's commerce ministry, saying it will take action against countries making trade deals with the US but also aim to hurt Beijing's interests.

US Treasury Secretary Scott Bessent told a closed-door investor summit Tuesday that the tariff standoff with China is unsustainable and that he expects the situation to de-escalate, according to a report from Bloomberg. Bessent added that negotiations haven't started, but a deal is possible, according to people who attended his session at an event in Washington that wasn't open to the public or media.

The Treasury Department didn't immediately respond to Bloomberg's request for comment.

European Central Bank President Christine Lagarde also reportedly said Tuesday she expected that the prospect of President Trump firing Fed Chair Powell was not on the table.

The CBOE Volatility Index slumped 7.3% to 31.32.

Gold futures fell 0.3% to $3,413.39 per ounce, after hitting a new record high of $3,509.90 earlier in the session.

The ICE US Dollar Index rose 0.6% to 98.84, recovering from its lowest level in about three years after concern mounted around the Fed's independence.

West Texas Intermediate crude oil futures gained 2% to $63.67 a barrel.

In economic news, the Richmond Fed's monthly manufacturing index fell to minus 13 in April from minus 4 in March, below expectations for minus 7 in a Bloomberg-compiled survey. The index indicates a faster pace of contraction in the sector, which matches other regional manufacturing data.

Redbook US same-store sales jumped 7.4% from a year earlier in the week ended April 19 after a 6.6% increase in the previous week.

The International Monetary Fund cut its estimate for 2025 global growth to 2.8% from 3.3% forecast in January in its most recent World Economic Outlook released Tuesday. For the US, the IMF now sees a 1.8% gain in 2025 after a 2.8% increase in 2024, a downward adjustment from the 2.7% growth estimate for 2025 in January. A further slowdown to 1.7% growth is expected for 2026.

US Treasury yields traded mixed, with the 10-year down 1.8 basis points to 4.39% and the two-year up 5.9 basis points to 3.81%.

In company news, Equifax (EFX) reported Q1 adjusted earnings and operating revenue that beat market expectations. The company raised its sales guidance for fiscal 2025. Its shares soared 14% intraday, the top performer on the S&P 500.

Northrop Grumman (NOC), down 15% intraday, was the worst performer on the index. The company reported Q1 earnings and sales that missed consensus, and its guidance for the full-year 2025 adjusted earnings per share also lagged expectations.