April 23 - U.S. stock index futures advanced sharply on Wednesday after President Donald Trump assured markets that he had “no intention” of firing Federal Reserve Chair Jerome Powell. His comments helped calm investor concerns following earlier speculation about a potential shake-up at the central bank.
S&P 500 futures rose about 2%, while Nasdaq 100 futures gained more than 2.5%. Dow Jones futures added nearly 2%, signaling a strong rebound following Tuesday's rally.
The 10-year Treasury yield dropped five basis points to 4.35%, while the 2-year yield inched up one basis point to 3.84%.
Trump's remarks followed a period of heightened anxiety over Powell's future, with some fearing a clash between the President and the Fed over interest rates. In a more conciliatory tone, Trump expressed a desire for Powell to lower rates but reassured markets that his job was safe. “If he doesn't, is it the end of the world? No,” Trump said.
Markets also welcomed Trump's indication that the 145% tariffs on Chinese goods may be reduced. This, along with a promise of “very nice” trade negotiations, boosted optimism around potential easing of U.S. consumer costs.
