Stock futures jumped Wednesday morning after U.S. President Donald Trump signaled a shift in tone toward Federal Reserve Chairman Jerome Powell, saying he has “no intention” of removing him from his post. The move, announced late Tuesday from the Oval Office, helped calm markets following weeks of tension between the White House and the central bank.
Dow Jones Industrial Average futures rose 416 points, or 1.06%, while futures linked to the S&P 500 climbed 1.45%. Nasdaq 100 futures gained 1.69%. The boost came as investors interpreted Trump’s statement as a sign of potential stability in monetary policy leadership.
Trump’s comment marked a departure from his recent harsh criticism of Powell. Just days earlier, he had publicly called the Fed chair a “major loser” and demanded steep interest rate cuts. The president even suggested Powell’s “termination cannot come fast enough” in a Truth Social post last week. Powell, appointed by Trump in 2018, is set to remain in his role until May 2026.
The futures rally followed a strong showing in the previous session, with the Dow surging over 1,000 points to break a four-day losing streak. The S&P 500 and Nasdaq Composite also gained more than 2% each.
Additional support for investor sentiment came from Treasury Secretary Scott Bessent, who hinted at potential “de-escalation” in the ongoing trade war with China. Speaking to investors at a JPMorgan Chase-hosted meeting Tuesday, Bessent said, “No one thinks the current status quo is sustainable,” according to a source present.
While Trump has temporarily paused many of the “reciprocal” tariffs, a 145% duty on Chinese imports remains in place, met with a 125% retaliatory tariff from Beijing. Investors had grown increasingly wary of the trade conflict’s impact on global growth, and Bessent’s remarks offered a glimmer of hope for easing tensions.
Despite the market’s bullish momentum, recent volatility has driven investors toward safe-haven assets. Gold futures, for example, have surged more than 8% in April, hitting a record $3,509.90 on Tuesday.
“There is a ton of money hiding out in gold at the moment, so there’s plenty of unproductive money that will find its way back into the market at some point,” said Jamie Cox, managing partner at Harris Financial Group. “The money is there, it’s just yellow at the moment.”
With Powell’s position seemingly secure and signs of potential shifts in trade policy, investors are cautiously optimistic — though broader economic uncertainties remain.
