Investing.com-- U.S. stock index futures rose sharply on Tuesday evening as less hawkish comments from President Donald Trump- on China and the Federal Reserve- sparked some hopes over a deescalation in his agenda.
Tesla was a standout performer in aftermarket trade, rising sharply after CEO Elon Musk vowed to dedicate more time to the electric maker.
Futures rose after a positive session on Wall Street, as a mix of improving sentiment, positive earnings, and a heavy measure of bargain buying, helped spark risk-on buying.
S&P 500 Futures rose 2% to 5,422.0 points, while Nasdaq 100 Futures rose 2.2% to 18,795.0 points by 19:15 ET (23:15 GMT). Dow Jones Futures rose 1.7% to 40,012.0 points.
Wall St rebounds as Trump backtracks on Powell, touts softer stance on China
Wall Street indexes rose sharply on Tuesday after Trump backtracked on some of his criticism of Fed Chair Jerome Powell, claiming that he did not intend to fire him.
The President had recently launched a social media tirade against Powell, egging him to cut interest rates or risk a U.S. economic slowdown. Trump had also called for his removal, ramping up concerns over the Fed’s independence.
Trump also presented a less hawkish stance on China, stating that his administration was “doing fine with China” and other countries, even after he recently ramped up tariffs on Beijing to 145%.
Trump said that high tariffs on China will come down “substantially,” but “it won’t be zero.”
Trump’s comments on China came after reports showed Treasury Secretary Scott Bessent viewed the ongoing U.S.-China trade war as unsustainable, and that he expected a deescalation soon.
This drummed up some hopes for a less severe trade war between the world’s biggest economies, which has been a major drag on sentiment in recent weeks.
Wall Street rebounded following Bessent and Trump’s comments, with the S&P 500 rallying 2.5% to 5,287.75 points. The NASDAQ Composite rose 2.7% to 16,300.42 points, while the Dow Jones Industrial Average rose 2.7% to 39,186.98 points.
Tesla rises past weak Q1 as Musk vows to reduce DOGE activity
Tesla Inc (NASDAQ: TSLA ) jumped 5.1% to $237.97 in aftermarket trade, brushing off weaker-than-expected March quarter revenue and profit.
Tesla shares rose after Musk said he will cut back on his time working with the U.S. government, and will focus more on the EV maker, starting from May.
Tesla investors were concerned that Musk was prioritizing the Department of Government Efficiency over running the EV maker- a trend made even more dire by Tesla logging consistently weaker sales in recent quarters, as it grapples with an aging lineup and tougher competition.
Public outrage over Musk’s government actions and political affiliations had also dented Tesla’s sales.
Beyond Tesla, Wall Street majors such as Verizon Communications Inc (NYSE: VZ ), Rtx Corp (NYSE: RTX ), Lockheed Martin Corporation (NYSE: LMT ), and Moodys Corporation (NYSE: MCO ) all clocked stronger than expected earnings, setting a positive precedent for other upcoming earnings. Google owner Alphabet Inc (NASDAQ: GOOGL ) is set to report on Thursday, and will be a key point of focus this week.