Stocks are experiencing a 4 percent rise this week as investors react positively to potential easing of trade tensions between the U.S. and China. The Chinese government is reportedly considering exempting certain U.S. imports from its hefty 125 percent retaliatory tariffs, which are crucial for supply chains. Despite a lack of official negotiations between the U.S. and China, hopes for tariff relaxations, particularly on semiconductors, are impacting the market. Asian and European markets have also seen gains, with the Nikkei 225 and Taiwan’s benchmark index rising significantly. Meanwhile, the economic impact of the trade war is evident with companies like PepsiCo and Procter & Gamble adjusting their financial outlooks due to decreased consumer spending and tariff uncertainties.

The stock market is on track for a weekly gain, with a 4 percent increase driven by investor optimism over potential easing of U.S.-China trade tensions, despite a lower open on Friday.

Michael Hart from the American Chamber of Commerce in China indicated that China's government is considering exempting some U.S. imports from retaliatory tariffs, essential for maintaining supply chains.

While S&P 500 futures showed a slight decline, the index had risen nearly 4 percent through Thursday, although it remains significantly lower since President Trump's return to office.

The Chinese government has denied ongoing trade negotiations with the U.S., countering President Trump's claims, while Asian and European markets have shown positive movements.

China may be reconsidering tariffs on U.S. semiconductors, crucial for its tech industry, with potential exemptions for advanced chips manufactured outside the U.S., although no official policy change has been announced.

China's Politburo expressed readiness to stabilize the economy during trade turmoil, focusing on employment and financial support for companies hit by tariffs, under the leadership of Xi Jinping.

Consumer companies like PepsiCo and Procter & Gamble have lowered their financial forecasts due to global economic concerns and fluctuating tariff policies affecting consumer spending.