US stock markets experienced a significant uptick as President Trump softened his stance towards the Federal Reserve and trade tariffs with China, boosting investor confidence. Major indices saw impressive gains with the Dow Jones Industrial Average climbing over 900 points, or 2.3%, and the Nasdaq Composite rising nearly 600 points, or about 3.6%. The S&P 500 Index increased by approximately 2.7%, while the Philadelphia Semiconductor Index surged by 5.3%.
Trump's assurance that Federal Reserve Chair Jerome Powell would not be dismissed, alongside indications of reduced trade tensions with China, sparked a rally. The S&P 500 futures rose by 2.3% in pre-market trading, and the Stoxx 600 Index in Europe jumped 1.4%. This optimism was further supported by robust earnings reports from key firms such as Tesla (TSLA), Boeing (BA), AT&T, Philip Morris, and SAP, which outperformed expectations.
Despite the favorable market conditions, experts cautioned investors against excessive optimism due to the unpredictable nature of trade issues. While Trump's softer rhetoric provided temporary relief, some analysts urged vigilance regarding potential new tariff scenarios in the coming months.
