U.S. Markets Rally Amid Trade Deal Optimism and Fed Leadership Stability

U.S. stock index futures surged as President Trump reversed his stance on firing Federal Reserve Chair Jerome Powell, while expressing optimism for a trade deal with China. Tesla's shares rose following upbeat earnings. Markets responded positively, with significant shifts in Dow, S&P 500, and Nasdaq futures.

U.S. stock index futures soared on Wednesday, ignited by President Donald Trump's decision to maintain his support for Federal Reserve Chair Jerome Powell and his optimistic outlook towards a trade agreement with China.

Tesla's stock climbed 6.3% in premarket trading, buoyed by earnings that surpassed low expectations. CEO Elon Musk announced his intent to disengage from his roles in the Trump administration to prioritize business ventures.

The market's recovery followed Trump's softened rhetoric towards Powell, easing investor tensions and resulting in significant gains across major indices, including the Dow, S&P 500, and Nasdaq.

(With inputs from agencies.)