GLOBAL MARKETS-Stocks, dollar climb, gold falls as US says China tariffs not sustainable

By Caroline Valetkevitch

NEW YORK, April 23 (Reuters) - Major stock indexes rallied, the dollar gained against the euro and other currencies while safe-haven gold dropped on Wednesday as the Trump administration signalled a willingness to de-escalate its trade war with China.

U.S. Treasury Secretary Scott Bessent said that high tariffs between the United States and China are not sustainable.

U.S. President Donald Trump told reporters the U.S. is "going to have a fair deal with China," but did not outline any specifics.

Adding to the upbeat market tone, Trump late Tuesday backed off from threats to fire Federal Reserve Chair Jerome Powell.

"There seems to be some light at the end of the tunnel here in terms of the trade war," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

Trump's multi-front tariff war has roiled markets in recent weeks as investors worried it would push the economy into recession, while his criticism of Powell has added to investor concerns about U.S. assets.

Some earnings news in the U.S. and elsewhere also buoyed stocks on Wednesday. Boeing BA.N shares were up 6.6% after the company reported a smaller-than-expected quarterly loss.

The Dow Jones Industrial Average .DJI rose 426.71 points, or 1.09%, to 39,612.42, the S&P 500 .SPX rose 91.83 points, or 1.73%, to 5,379.12 and the Nasdaq Composite .IXIC rose 457.34 points, or 2.79%, to 16,755.85.

Shares of Tesla TSLA.O jumped 8.1% even though the company reported results that missed analyst forecasts. Tesla boss Elon Musk said on a call with analysts he would significantly reduce his involvement in work at the Department of Government Efficiency from next month to focus more on his many companies.

MSCI's gauge of stocks across the globe .MIWD00000PUS rose 11.56 points, or 1.45%, to 807.82. The pan-European STOXX 600 .STOXX index ended up 1.78%.

After hitting record highs in recent sessions, spot gold XAU= slipped 3% to $3,281.6 an ounce.

The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.32% to 99.88, with the euro EUR= down 0.88% at $1.1319. Against the Japanese yen JPY=, the dollar strengthened 1.32% to 143.45.

Citadel's founder and CEO Kenneth Griffin said on Wednesday that Trump's administration needs to be careful about potential damage to the creditworthiness of U.S. Treasuries.

Investors have been worried that White House pressure to cut interest rates would risk fuelling inflation just as Trump's tariffs jack up prices.

U.S. Treasury benchmark yields were little changed.

The yield on benchmark U.S. 10-year notes US10YT=RR was flat at 4.389% from late on Tuesday.

Oil was lower, with U.S. crude CLc1 falling $1.40 to settle at $62.27 a barrel, while Brent crude LCOc1 declined $1.32 to settle at $66.12.

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