U.S. stock futures rallied sharply on Wednesday morning, buoyed by President Donald Trump’s statement that he has no plans to remove Federal Reserve Chairman Jerome Powell from his position. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 2.42%, 1.68%, and 2.08%, respectively, at 5:07 a.m. EST, April 23.
Trump’s comment marks a notable shift from his recent criticisms, such as labeling Powell a “major loser” and demanding immediate interest rate cuts. Moreover, just days prior, Trump had expressed a desire for Powell’s “termination.”
Further, the positive sentiment followed a robust trading day on Tuesday. The Dow Jones, the S&P 500, and the Nasdaq Composite (NDAQ) gained 2.66%, 2.51%, and 2.71%, respectively.
Apart from Trump’s comment, the upside was also fueled by optimistic remarks from Treasury Secretary Scott Besset concerning the trade relationship with China. Speaking at a JPMorgan (JPM) event, Besset indicated that negotiations aimed at de-escalation could be on the horizon, alleviating concerns about ongoing trade tensions.
However, he later clarified that trade talks with China hadn’t started and could be lengthy, which hurt market sentiment to some extent.
In company-specific news, Tesla (TSLA) reported a 71% drop in Q1 earnings due to weak sales and growing backlash against Elon Musk‘s political involvement. Interestingly, Musk shared plans to cut back his role in the Department of Government Efficiency (DOGE) starting in May to focus more on Tesla.
Despite the weak results, Tesla stock rose in pre-market trading as investors welcomed Musk’s focus on the company and his plans to start affordable EV production in June.
Looking ahead, investors are awaiting earnings reports from several key companies today, such as AT&T (T), Boeing (BA), GE Vernova (GEV), International Business Machines (IBM), ServiceNow (NOW), Chipotle Mexican Grill (CMG), and Discover Financial (DFS).
On the economic front, S&P flash U.S. Services and Manufacturing Purchasing Managers’ Index (PMI) and New Home Sales data are scheduled for release today.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.344%. Simultaneously, WTI crude oil futures are trending higher, hovering near $64.83 per barrel as of the last check.
Elsewhere, European indices opened higher on Wednesday as global sentiment improved, after Trump reassured that he will not remove Powell.
Asia-Pacific Markets Traded Mixed on Wednesday
Most of the Asia-Pacific indices were in the green today, fueled by optimism over easing U.S.-China trade tensions. However, investors stayed cautious about long negotiations and recession risks.
At the same time, the Hong Kong index was up 2.37%. Also, Japan’s Topix and Nikkei indices closed higher by 2.06% and 1.89%, respectively. Further, China’s Shenzhen Component index gained 0.67%, while the Shanghai Composite index was down 0.1%.
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