Wall Street Rallies as Tariff Fears Ease and Earnings Season Peaks

U.S. stock index futures climbed after President Trump reduced tariff threats against Europe, sending positive signals to the market. The main indexes rebounded as investors await key economic data. The CBOE Volatility Index decreased, with market attention on upcoming Federal Reserve decisions and earnings reports expected to influence sentiment.

U.S. stock index futures saw an upswing on Thursday, indicating renewed buying interest on Wall Street. This comes after President Donald Trump scaled back his tariff threats against European countries, refocusing investor attention on upcoming economic data releases.

Market indexes rebounded on Wednesday, with the S&P 500 enjoying its largest single-day gain in two months. Trump's easing on tariffs aimed at European counterparts, initially intended as leverage over Greenland, helped calm global markets, which had been unnerved by the threats. The infamous CBOE Volatility Index, a known measure of market fear, slid further from its recent highs.

Investors are now shifting focus to imminent U.S. economic data, including GDP estimates and inflation figures, ahead of the Federal Reserve's meeting next week. As companies report their earnings, mixed results are emerging, with some firms outperforming and others falling short of expectations. Developments like Alibaba's chipmaking venture and trade tribunal rulings are among the factors influencing current market sentiment.

(With inputs from agencies.)