U.S. stock futures jumped Wednesday after President Donald Trump walked back his threats to fire Federal Reserve Chair Jerome Powell and expressed optimism about a potential U.S.-China trade deal.
Tesla shares surged 6.3% in premarket trading as the EV maker posted better-than-expected earnings, with CEO Elon Musk saying he would reduce his political involvement to focus on his companies.
Trump had previously criticized Powell, even suggesting he wanted him fired “fast enough,” but reversed course Tuesday, saying he had “no intention” of removing him. The shift eased investor concerns that had rattled markets earlier in the week.
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Trade hopes also lifted sentiment after Trump said a deal with China could “substantially” lower tariffs.
Futures rallied, with the Dow up 1.7%, the S&P 500 gaining 2.2%, and the Nasdaq climbing 2.5%. Big tech stocks like Apple (+3%) and Nvidia (+4.8%) rose ahead of Alphabet’s earnings Thursday.
While Trump pushed for more rate cuts, markets expect the Fed to hold rates steady next month (93.2% probability, per CME FedWatch). Investors now await more earnings reports—including from Boeing—and PMI data for insights on tariff impacts.
Intel shares rose 3% on reports of major job cuts.
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