U.S. stock futures rose after President Trump said he had “no intention” of firing Federal Reserve Chairman Jerome Powell, easing Wall Street concerns about threats to the central bank’s independence.
Dow Jones Industrial Average futures (YM=F) rose 1.1%, while benchmark S&P 500 futures (ES=F) rose 1.4%. Tech-heavy Nasdaq Composite futures (NQ=F) surged 1.6%.
Trump told reporters in the Oval Office on Tuesday that he “never” intended to remove Powell, but he reiterated that he wanted the Fed chairman to lower interest rates. ”I would like to see him be a little more aggressive in lowering rates,” the president said.
Trump’s comments marked a clear softening of his tone toward Powell, relieving investors who had worried that a growing rift between the two men could add to uncertainty in markets already battered by tariffs.
Just Monday, Trump called the Fed chairman a “big loser,” sending stocks tumbling. Last week, the president said Powell’s firing “can’t come soon enough.”
Wall Street was also optimistic on Tuesday amid new signs of possible progress in trade talks between the U.S. and major trading partners.
On China tariffs, Trump said he expected them to come down “substantially,” while Treasury Secretary Scott Bessant called them “unsustainable.” U.S. Vice President J.D. Vance also said progress was being made in talks with India.
Tesla reported quarterly earnings after the close on Tuesday. The electric car maker’s results fell short of Wall Street expectations, but its shares rose after CEO Elon Musk revealed he would “substantially” reduce the time he spends on Dogecoin (DOGE).
Corporate earnings season continues on Wednesday with Boeing (BA), Chipotle (CMG), IBM (IBM) and AT&T (T). The Labor Department will also release weekly jobless claims.
Oil prices extended gains as U.S. President Donald Trump said he had no intention of firing Federal Reserve Chairman Jerome Powell and an industry report pointed to a sharp drop in U.S. crude inventories.
Trump’s criticism of Federal Reserve Chairman Jerome Powell triggered a surge in West Texas Intermediate crude oil (CL=F) above $64 a barrel on Tuesday night, and U.S. stock index futures also surged. Trump’s criticism of Powell triggered a global stock market sell-off on Monday, but oil futures and other financial assets later recovered some of their losses.
Crude oil prices (BZ=F) rebounded on Tuesday, helped by speculation that Iran’s oil exports could be restricted after the United States announced sanctions on LPG magnate Saeed Assadullah Emamjomeh and his network of businesses. The Trump administration has previously vowed to exert “maximum pressure” on Tehran.
Meanwhile, the American Petroleum Institute (API) reported that U.S. crude oil inventories fell by 4.57 million barrels last week. If official data later on Wednesday confirms the figure, it will be the biggest drop since November.
