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U.S. stock index futures climbed sharply Wednesday, extending Tuesday’s gains, as investors cheered President Donald Trump’s softer rhetoric on both the Federal Reserve and trade with China. Robust earnings, including a surprise beat from Tesla, added fuel to the rally.
Market Snapshot (as of 05:45 ET / 09:45 GMT):
- Dow Jones Futures: +600 points (+1.5%)
- S&P 500 Futures: +104 points (+2.0%)
- Nasdaq 100 Futures: +440 points (+2.4%)
Trump Shifts Tone on Powell and Tariffs
Markets were lifted after Trump walked back threats to fire Fed Chair Jerome Powell, saying he didn’t intend to remove him despite recent calls for “preemptive” rate cuts. Concerns over central bank independence had weighed on risk sentiment in recent weeks.
Adding to the upbeat mood, Trump signaled a potential reduction in tariffs on China, claiming the U.S. was “doing fine with China,” though any reduction “won’t be zero.” This softening followed reports that Treasury Secretary Scott Bessent viewed the current trade war as “unsustainable” and expected de-escalation soon.
Tesla Pops as Musk Steps Back from Politics
Tesla (TSLA) surged over 6% premarket after reporting better-than-expected Q1 profits in its core auto segment, despite broader concerns over demand.
Also boosting sentiment was news that CEO Elon Musk will scale back his political involvement, including reduced participation in Trump’s “Department of Government Efficiency” (DOGE), to refocus on company operations. Tesla has faced backlash and protests over Musk’s political affiliations, which many saw as distracting from business priorities.
More Earnings on Tap
Following Tesla’s earnings beat, investors await:
- Pre-market: Amphenol (APH), TE Connectivity (TEL), Vertiv (VRT)
- Post-market: IBM (IBM), ServiceNow (NOW), Texas Instruments (TXN)
Oil Climbs on Iran Sanctions, Stockpile Drop
Oil prices continued their upward move after the U.S. imposed fresh sanctions on Iranian oil and LPG shipments, targeting Iranian shipping magnate Seyed Asadoollah Emamjomeh.
Also supporting prices, the API reported a 4.6 million-barrel draw in U.S. crude inventories last week, signaling tightening supply.
- Brent Crude: +1.1% to $68.20
- WTI Crude: +1.3% to $64.48
Traders now await official EIA inventory data later today.
Key Takeaways
- Market mood improved significantly as Trump eased tensions over both Fed policy and China trade.
- Tesla’s earnings beat and Musk’s planned pullback from politics reassured investors.
- Oil markets remain buoyant on sanctions and supply data.
With earnings season in full swing and political volatility easing—at least temporarily—markets are gaining confidence, though volatility may persist as trade talks and monetary policy remain in flux.
