U.S. Stock Surge: Market Gains as Trump Seeks Trade Peace

U.S. stock index futures surged following President Trump's softened stance on Federal Reserve leadership and optimism for a trade deal with China. This, coupled with Tesla's encouraging earnings, lifted market sentiment, while investors watched for further impacts of tariffs and Federal Reserve policies on economic growth.

U.S. stock index futures experienced a notable surge Wednesday as President Trump withdrew threats to dismiss Federal Reserve Chair Jerome Powell, enhancing prospects for a trade deal with China. This reversal in Trump's position bolstered investor confidence, which had been shaken by recent tensions and losses involving U.S. equities and currency.

In a further boost to market sentiment, electric vehicle maker Tesla reported better-than-expected profits from its core automotive sector, leading to a 6.3% rise in premarket shares. CEO Elon Musk indicated a strategic withdrawal from participating in the Trump administration, opting to focus on his business ventures.

Tech giants also contributed to market gains, with Apple, Nvidia, and Alphabet seeing appreciable increases in their stock prices. Meanwhile, investors remained vigilant on tariff impacts and monetary policies, with Fed officials and economic data providing ongoing market direction.

(With inputs from agencies.)