US stock futures jumped Wednesday after President Trump said he has “no intention” of firing Fed Chair Jerome Powell, easing Wall Street fears over the central bank’s independence. Meanwhile, Trump also softened his tone on tariffs, hinting that eye-popping duty levels on Chinese imports would ultimately be scaled back.
Futures attached to the Dow Jones Industrial Average (YM=F) popped 1.7%, gaining nearly 700 points, while futures attached to the benchmark S&P 500 (ES=F) jumped 2.3%. Futures attached to the tech-heavy Nasdaq Composite (NQ=F) soared 2.8%.
Trump told reporters from the Oval Office on Tuesday that he “never did” intend to remove Powell, though he reiterated his desire for the Fed chair to reduce interest rates. “I would like to see him be a little more active in terms of his idea to lower interest rates,” the president said.
Trump’s comments marked a clear softening in tone toward Powell, offering relief to investors who had feared a growing rift between the two could add to uncertainty in a market already shaken by tariffs.
As recently as Monday, Trump had called the Fed chair a “major loser,” causing stocks to tank. Last week, the president said Powell’s termination couldn’t come “fast enough.”
Wall Street was also upbeat thanks to new signs trade talks between the US and major trading partners might advance.
On China tariffs, Trump said he expects them to come down “substantially,” while Treasury Secretary Scott Bessent called them “unsustainable.” Vice President JD Vance also said talks with India had made progress.
Read more: The latest on Trump’s tariffs
Tesla (TSLA) stock jumped Wednesday after posting quarterly earnings following Tuesday’s closing bell. The EV maker missed Wall Street estimates, but its shares rose after CEO Elon Musk revealed he would ‘significantly’ reduce the time he spends on DOGE.
Other notable movers on Wednesday included Bitcoin (BTC-USD), which extended gains past $93,000. Nvidia (NVDA) also rose over 4% on Wednesday.
Corporate earnings season continues today, with results due from Boeing (BA), Chipotle (CMG), IBM (IBM), and AT&T (T).
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