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Trump Softens Stance, Markets Rebound Strongly.

Trump Softens Stance, Markets Rebound Strongly.

U.S. equity futures surged on Wednesday, led by a 2% gain in S&P 500 contracts, as global markets reacted positively to President Donald Trump’s latest comments signaling a de-escalation in both monetary and trade tensions. Asian equities also climbed, and the U.S. dollar strengthened, as investors embraced a renewed risk-on sentiment.

The market rebound followed Trump’s reversal on key policy threats. The President walked back his public criticism of Federal Reserve Chair Jerome Powell, clarifying he had “no intention” of removing him and attributing recent tensions to media misinterpretation. “The press runs away with things,” Trump said, while still urging the Fed to lower interest rates, calling this “a perfect time” for monetary easing.

On trade, Trump also hinted at flexibility regarding his aggressive tariff stance on China, suggesting that the recently proposed 145% tariff level “won’t be that high” and “will come down substantially.” This unexpected moderation helped alleviate market fears over prolonged trade disruption and policy instability.

Investors responded swiftly. Major U.S. indexes rebounded more than 2.5% on Tuesday, with technology stocks leading the recovery. On Wednesday morning, Nasdaq futures rose over 2% in pre-market trading, while Dow Jones Industrial Average futures added 1.2%.

While uncertainty remains about whether Trump’s statements represent a lasting shift or a temporary reprieve, markets are currently pricing in lower policy risk and improved economic outlook.

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