Stocks Set for Higher Open as Traders Welcome Powell Stability and Trade Hopes
U.S. stock futures pointed to a strong start Wednesday, with traders encouraged by signs of easing political pressure on the Federal Reserve and a potential thaw in U.S.-China trade tensions. Dow futures rose 2%—roughly 800 points—while S&P 500 and Nasdaq futures climbed 2.7% and 3.2%, respectively, following Tuesday’s broad rally.
What’s Driving the Rebound?
Market tone improved after President Trump clarified he does not plan to remove Fed Chair Jerome Powell, dialing back recent attacks that had rattled investors. Trump also suggested tariffs on Chinese goods “won’t be anywhere near” current levels, though they “won’t be zero.” Treasury Secretary Scott Bessent added to the optimism, predicting a “de-escalation” in trade disputes “very soon.”
Which Stocks Are Leading the Gains?
Tesla shares jumped more than 7% premarket, rebounding despite a weaker-than-expected first-quarter report. Revenue missed forecasts at $19.34 billion versus $21.11 billion expected, and earnings came in at 27 cents per share. Still, investor relief around Musk reducing his White House involvement and the broader market rally helped fuel the move.
Boeing advanced over 5% after reporting a narrower quarterly loss and plans to increase 737 Max production. The company lost $31 million in Q1, an improvement from last year’s $355 million loss. CEO Kelly Ortberg said Boeing is requesting FAA approval to lift monthly output to 42 jets.
Other Key Movers to Watch
Nvidia and Apple gained 5.8% and 3.5%, respectively, in early trading. GE Vernova rallied more than 7% despite anticipating a tariff-related hit of up to $400 million.
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See all Dow Jones forecastsIntuitive Surgical popped 7% after beating earnings and revenue expectations, and Capital One rose 3% on strong Q1 results. BP gained 2% after Elliott Management disclosed a more than 5% stake.
What’s Next for Traders?
The market is eyeing whether this bounce can extend into a sustained rally. Powell’s job security and Trump’s softened trade stance are near-term positives, but attention will stay on upcoming earnings, tariff updates, and Fed commentary. Treasury yields, currently at 4.3%, and oil prices near $63 also remain on radar as macro pressure points.
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