U.S. stock futures rose and the dollar strengthened after President Donald Trump said he had no intention of firing Federal Reserve Chair Jerome Powell and would not take a hard line in any trade talks with China.
As of 7:10 p.m. New York time, the S&P 500 futures contract rose 2%, poised to extend the more than 2% gain in the spot market. The Nasdaq 100 futures contract climbed 2.2%, while the US dollar strengthened against most major currencies.
Despite weak quarterly results, Tesla’s share price rose by about 5% in after-hours trading as CEO Elon Musk said he would reduce his government work next month and refocus on the carmaker.
Other large technology stocks rose in late trading, with Apple Inc., Meta Platforms Inc. and Amazon.com Inc. all climbing at least 2%. Shares of Chinese companies Alibaba Group Holding Ltd., JD.com Inc. and PDD Holdings Inc. listed in the United States also rose.
The day before Trump made comments on Powell, he had publicly criticized the Fed chair Powell many times, raising questions about the independence of the Federal Reserve. This exacerbated market concerns over Trump’s tough tariffs and the rising possibility of a US economic recession.
Michael O’Rourke, chief market strategist at JonesTrading, said: “If the president fires Powell, it would be a manufactured and unnecessary crisis and a losing move for any president.”
On Tuesday night, at the same event, Trump said that as the trade dispute between the United States and China, which is a confrontation between the world’s two largest economies, threatens their health, he will be “very nice” to China.
U.S. Treasury Secretary Scott Bessent said at a closed-door investor summit that the tariff deadlock with China cannot be sustained by both sides and that they must find a way to ease the situation. Subsequently, the stock market rose earlier on Tuesday.
The US dollar rose most against the Japanese yen and the Swiss franc as gains in US stock index futures curbed demand for safe-haven assets. The dollar rose as much as 1% against both currencies, reaching around 143.00 yen and 82.69 francs respectively.
The chief foreign exchange strategist of Crédit Agricole said that Trump’s move to suspend some tariffs would help ease market concerns over US economic growth and slow the outflow of capital from the US market. According to Bloomberg’s ranking, Crédit Agricole was the most accurate major currency predictor in the first quarter.
Billy Leung, an investment strategist at Global X ETFs, said: “The dollar is rising, driven by Bessent’s remarks on China and the news that Trump has no intention of removing Powell – all of which are positive for the risk sentiment of US assets. Both the stock market and the dollar rose yesterday, but it should be noted that this is just a correction after the dollar was heavily sold the previous day.”
Technical analysis:
Gold: The overnight price dropped nearly $200 from the highest point of 3,500, and after touching the lowest point of 3,315 in the early trading on Wednesday, it has temporarily stabilized. Trump’s denial of wanting to fire Powell and his expression of possibly lowering tariffs on China have both contributed to a recovery in risk sentiment. This has exerted a certain amount of downward pressure on gold, which has seen a significant rise recently. Today, we should pay attention to the battle for the area around 3,300-3,320. It is advisable to wait for confirmation before seeking opportunities to buy. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and note “666” in the message.
Nasdaq: We clearly indicated on the plugin yesterday that a buy should be made after the blue momentum broke through, and we also reminded that once the price recovers above 18,050, any bullish signal opportunity should be watched. The price opened higher in the morning session. Pay attention to the pullback confirmation signal during the day. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the chart, please contact V: Hana-fgfg and note “666” in the message.
Crude oil: Due to Trump’s 90-day suspension of full reciprocal tariffs, the pressure on oil prices from recession concerns has been greatly alleviated. After the price broke through the blue area indicated on our plugin, it retraced for confirmation and then rose by 1.5 dollars (150bp). Within the day, we closely monitor the bullish signal after the price continues to break through 64.50. For detailed positions, please consult the plugin.
(Crude Oil 15-Minute Chart)
The plugin is updated from 12:00 to 13:00 every trading day. If you want to experience the same plugin as shown in the picture, please contact V: Hana-fgfg and note “666” in the message.
Today’s key financial data and events to focus on:
15:30 Germany April Markit/BME Manufacturing Purchasing Managers’ Index (PMI) Preliminary Value
16:00 Eurozone April Markit Manufacturing Purchasing Managers’ Index (PMI) Preliminary Value
16:30 UK April Markit/CIPS Manufacturing Purchasing Managers’ Index
18:00 ECB Governing Council member Klaas Knot delivers a speech.
18:30 Speech by Gertjan Vlieghe, Chief Economist of the Bank of England
21:45 US April Markit Services PMI Preliminary Value
22:00 US New Home Sales for March (Annualized Monthly Rate)
