Futures Pointing To Extended Rally On Wall Street

The major U.S. index futures are currently pointing to a sharply higher open on Wednesday, with stocks likely to extend the seen over the course of the previous session.

The upward momentum on Wall Street comes after President Donald Trump appeared to soften his stance on Federal Reserve Chair Jerome Powell.

“I have no intention of firing him,” Trump told reporters on Tuesday but reiterated he would like to see Powell and the Fed resume lowering interest rates.

Trump’s attack on Powell, including calling him a “major loser” as recently as Monday, had led to anxiety on Wall Street about the Fed’s independence.

The president also suggested he’s willing to take a less confrontational approach to trade talks with China, predicting the current 145 percent tariff on Chinese imports will “come down substantially.”

The markets may also benefit from a positive reaction to earnings news from Tesla (TSLA), with the electric vehicle maker surging by 7.9 percent in pre-market trading.

The jump by Tesla comes after the company reported weaker than expected first quarter results but CEO Elon Musk said amount of time he spends with the Department of Government Efficiency will decline “significantly” beginning in May.

Stocks moved sharply higher over the course of the trading day on Tuesday, regaining ground following the sell-off seen in the previous session. The major averages all showed significant moves to the upside, with the Dow and the Nasdaq closing higher for the first time in five days.

The major averages surged in morning trading and remained firmly positive throughout the afternoon. The Dow soared 1,016.57 points or 2.7 percent to 39,186.98, the Nasdaq spiked 429.52 points or 2.7 percent to 16,300.41 and the S&P 500 shot up 129.56 points or 2.5 percent to 5,287.76.

The early rally on Wall Street came as some traders looked to pick up stocks at reduced levels following the steep drop seen on Monday.

Stocks showed a substantial move to the downside during Monday’s session amid lingering trade war concerns and Trump’s continued attacks on Powell.

Further buying interest was generated in reaction to reports indicating Treasury Secretary Scott Bessent told a closed-door investor summit he expects the trade dispute between the U.S. and China to de-escalate.

Citing people who attended the session at an event hosted by JPMorgan Chase (JPM), Bloomberg reported Bessent said negotiations haven’t started but that a trade deal with China is possible.

A person in the room also told CNBC that Bessent called the current status quo unsustainable and predicted there will “de-escalation” in the “very near future.”

The markets also benefitted from a positive reaction to some of the latest earnings news, with shares of 3M (MMM) soaring by 8.1 percent after the manufacturing conglomerate reported better than expected first quarter results.

Aircraft engine supplier GE Aerospace (GE) also spiked by 6.1 percent after reporting first quarter earnings that exceeded analyst estimates.

Housing stocks showed a substantial move to the upside over the course of the session, driving the Philadelphia Housing Sector Index up by 3.7 percent.

Significant strength was also visible among financial stocks, with the NYSE Arca Broker/Dealer Index and the KBW Bank Index surging by 3.4 percent and 3.3 percent, respectively.

Retail, biotechnology and oil producer stocks also saw considerable strength, while gold stocks were among the few groups to buck the uptrend amid a pullback by the price of the precious metal.

Commodity, Currency Markets

Crude oil futures are slumping $0.88 to $62.79 a barrel after jumping $1.26 to $63.67 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $3,339.60, down $79.80 compared to the previous session’s close of $3,419.40. On Tuesday, gold slipped $5.90.

On the currency front, the U.S. dollar is trading at 141.74 yen compared to the 141.57 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1410 compared to yesterday’s $1.1421.

Asia

Asian stocks followed Wall Street higher on Wednesday after U.S. President Donald Trump backed down from threats to dismiss Federal Reserve Chair Jerome Powell and signaled that 145 percent tariffs on Chinese imports will “come down substantially.”

However, Trump noted that he would set the terms of a deal if Beijing did not enter talks.

U.S. Treasury Secretary Scott Bessent was reported earlier on Tuesday saying that there will be a de-escalation in U.S.-China trade tensions but noting negotiations with Beijing have not yet started and would be a “slog.”

The dollar rebounded and longer-dated Treasuries rallied as Trump’s comments helped calm investor fears over the Fed’s independence and the possible threat to U.S. monetary and fiscal credibility.

A recovery in risk assets dented demand for bullion, while oil extended an overnight rally on the back of new Iran sanctions and industry data showing a drop in U.S. crude oil inventories.

Chinese markets underperformed regional peers, with the benchmark Shanghai Composite Index closing down 0.1 percent at 3,296.36 as the IMF slashed its Chinese growth forecast for this year to 4 percent, well below Beijing’s official target.

Hong Kong’s Hang Seng Index rallied 2.4 percent to 22,072.62 on hopes of easing U.S.-China trade tensions.

Japanese markets rose sharply following optimistic earnings reports from key U.S firms and Tesla founder Elon Musk’s announcement that he would significantly scale back his Trump administration work in May to focus on the company.

The Nikkei 225 Index jumped 1.9 percent to 34,868.63, ending at a three-week high, led by technology and auto shares. The broader Topix Index settled 2.1 percent higher at 2,584.32.

Seoul stocks rallied to hit a one-month high due to easing Sino-U.S. trade tensions and hopes for upcoming trade talks to be held in Washington on Thursday.

Industry Minister Ahn Duk-geun said that the country would seek “a swift solution” over auto tariffs and have consultations over trade, shipbuilding and energy cooperation, among other issues, “in a calm and prudent manner.”

The Kospi climbed 1.6 percent to 2,525.56, marking the highest level since March 28.

Hyundai Motor rose 2.4 percent, POSCO Holdings rallied 3.2 percent, SK Hynix surged 4.1 percent and LG Energy Solution jumped 5.1 percent.

Australian markets advanced to reach a three-week high, led by banks and energy stocks.

Gold miners suffered heavy losses as bullion extended losses for a second day running after hitting a new record high above $3,500 an ounce.

The benchmark S&P/ASX 200 Index rose 1.3 percent to 7,920.50, while the broader All Ordinaries Index closed 1.4 percent higher at 8,125.20.

Woodside Energy Group surged 3.6 percent after beating first-quarter revenue expectations and backing its full-year production outlook.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index closed up 1.0 percent at 11,956.47.

Europe

European stocks have moved sharply higher on Wednesday after U.S. President Donald Trump toned down his rhetoric on Fed Chair Jerome Powell, saying he would like to see him be a little more active in terms of his idea to lower interest rates but has no intention to fire him.

Additionally, Trump also admitted that the 145 percent tariffs on China are “very high” and indicated they will come down substantially.

Meanwhile, the euro held losses after data showed the euro zone manufacturing sector remained in contraction in April, with a PMI score of 48.7, beating the 47.5 estimate. The bloc’s services PMI fell to a five-month low of 49.7 from 51 in March.

Elsewhere, the flash U.K. composite PMI fell from 51.5 to 48.2, reflecting contractions in both the manufacturing and services sector.

The German DAX Index is up by 2.2 percent, the French CAC 40 Index is up by 1.9 percent and the U.K.’s FTSE 100 Index is up by 1.1 percent.

Swedish truck maker Volvo has shown a strong move to the upside despite its first-quarter earnings missing analysts’ expectations.

Dutch paint maker Akzo Nobel has also moved sharply higher after its first quarter core profit beat expectations.

Chipmaking parts supplier BE Semiconductor Industries has also soared after reporting higher order bookings during the first quarter of 2025.

On the other hand, Fresnillo has plummeted after reporting about a 9 percent decline in silver production in the first quarter

Consumer goods giant Reckitt Benckiser has also slumped after missing first quarter sales estimates.

U.S. Economic News

Chicago Federal Reserve President Austan Goolsbee is scheduled to speak virtually before the Economic Mobility Summit sponsored by the Federal Reserve Bank of Philadelphia at 9 am ET.

At 9:35 am ET, Federal Reserve Board Governor Christopher Waller and St. Louis Federal Reserve President Alberto Musalem are due to deliver opening remarks before a “Fed Listens” event hosted by the Federal Reserve Bank of St. Louis.

The Commerce Department is scheduled to release its report on new home sales in the month of March at 10 am ET. New home sales are expected to increase to an annual rate of 682,000 in March after jumping to a rate of 676,000 in February

At 10:30 am ET, the Energy Information Administration is due to release its report on oil inventories in the week ended April 18th.

The Treasury Department is scheduled to announce the results of this month’s auction of $70 billion worth of five-year notes at 1 pm ET.

At 2pm ET, the Federal Reserve is due to release its Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts.

St. Louis Federal Reserve President Alberto Musalem is scheduled to deliver closing remarks before the “Fed Listens” event hosted by the Federal Reserve Bank of St. Louis at 2:35 pm ET.

At 6:30 pm ET, Cleveland Federal Reserve President Beth Hammack is due to speak before the Money Marketeers of New York University.