synopsis

Among the earnings to watch on Wednesday are AT&T (T), Boeing (BA), International Business Machines (IBM), Lam Research (LRCX), and Texas Instruments (TXN).

U.S. markets look set to rise for another session on Wednesday even as tariff uncertainties persist, driven by President Donald Trump dialing back his hardline stance on his central bank head and the ongoing tariff wars.

Trump toned down his rhetoric on Jerome Powell after his officials and advisers warned of a market fallout from his attacks on the Federal Reserve chair.

In a meeting with reporters at the Oval Office, he said, "I would like to see him be a little more active in terms of his idea to lower interest rates…but, no, I have no intention to fire him."

Trump also admitted that the 145% tariffs on China are “very high.”

“It won’t be that high,” he said. “It will come down substantially. But it won’t be zero. It used to be zero.”

With an overhang removed, the major index futures launched into a strong rally in the Asian session:

  • S&P 500 futures: +1.41%
  • Nasdaq 100 futures: +1.61%
  • Dow futures: +1.07%
  • Russell 2000 futures: +1.72%

 

Gold futures, which hit a record $3,509.90 an ounce in Asian hours on Tuesday, have pulled back below $3,400 and traded down about 0.80%. The rise in risk appetite and the dollar's rebound drove outflows from this safe-haven asset.

The U.S. Dollar Index traded slightly above 99 following Monday's drop to a fresh three-year low of 97.92.

Meanwhile, crude oil futures rose about 0.70% to $64.10.

The yield on the benchmark 10-year Treasury note slipped in Asian trading after edging down by 1.6 points to 4.389% on Tuesday. 

More Fed speakers are lined up for Wednesday, including Chicago Fed President Austan Goolsbee, who will deliver opening remarks in a virtual presentation at the Federal Reserve Bank of Philadelphia's Economic Mobility Summit at 9 am ET.

St. Louis Fed President Alberto Musalem and Fed Governor Christopher Waller will participate in the "Fed Listens Event" hosted by the St. Louis Fed. The event is scheduled for 9:30 a.m. ET.

Traders may also focus on S&P's April flash manufacturing and service activity data and the Fed's Beige Book, which compiles anecdotal evidence of economic conditions in the 12 Fed districts. The report is typically released two weeks before the next monetary policy meeting of the central bank.

Among the earnings to watch are AT&T (T), Boeing (BA), International Business Machines (IBM), Lam Research (LRCX), and Texas Instruments (TXN).

Treasury Secretary Scott Bessent reportedly said at an investor event hosted by JPMorgan Chase in Washington that he expects the trade tiff between the U.S. and China to cool off in the coming months.

Media reports also noted the U.S. is close to striking bilateral trade deals with India and Japan.

Carson Group Chief Market Strategist Ryan Detrick suggested in a post on X that the market may have hit the bottom. He noted that more than 89% of NYSE stocks advanced on Tuesday, which has happened twice over the past nine trading days.

"The first big day is a clue; the second is the signal," the strategist said. "Rare stuff and has always marked lows."

Detrick said that in the past, when this happened, the market was up 25% on average six months later.

On Tuesday, stocks rebounded sharply, with strength across the board. All 11 S&P 500 classes closed in the green.

Traders remained hopeful of a strong reporting season and resolution for the tariff crisis and picked up bargains following Monday's sharp sell-off. 

The SPDR S&P 500 ETF (SPY) exchange-traded fund (ETF) ended Tuesday's session up 2.60% at $527.25, while the Invesco QQQ Trust (QQQ) ETF jumped 2.63% at $444.48.

The SPDR Dow Jones Industrial Average ETF Trust (DIA) rallied 2.69% to $391.87.

The iShares Russell 2,000 ETF (IWM) ended up 2.59% at $187.47.

Notwithstanding the bounce back, the SPY, QQQ, and DIA are now down over 9.8%, 13%, and 7.5%, respectively, for the year-to-date period.

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