U.S. stock indices surged as positive sentiments arose from President Trump's assurance that he has no intention to dismiss Federal Reserve Chairman Jerome Powell. This statement, coupled with easing trade tensions, led to a collective rebound in the markets. The Dow Jones Industrial Average rose by 1.07%, the S&P 500 increased by 1.67%, and the Nasdaq Composite climbed 2.5%.
Trump's remarks came after he had previously expressed frustration with Powell over the Fed's hesitance to cut interest rates. Intervention by Treasury Secretary Mnuchin and Commerce Secretary Ross reportedly influenced Trump's change in tone, highlighting potential market turmoil and legal issues if Powell were fired.
Retail investors have been actively investing in U.S. stocks, injecting over $30 billion since early April. Major tech stocks saw significant gains, with Tesla (TSLA) rising over 5%, Amazon (AMZN) over 4%, and Facebook (META) over 4%. Bank stocks also saw increases, with JPMorgan Chase (JPM) up over 2%.
European markets mirrored the U.S. rally, with Germany's DAX, France's CAC 40, and the UK's FTSE 100 all closing higher. Conversely, international oil prices and gold saw declines.
