9 a.m. ET
Stocks were headed to a second big rally in two days after President Trump said he wouldn’t fire Federal Reserve Chairman Jerome Powell. And he said tariffs on goods from China will drop substantially once the two sides start to negotiate seriously.
Futures trading suggested the Standard & Poor’s 500 Index would open up 133 points. The Dow Jones Industrial Average would jump 750 points, and the Nasdaq Composite Index would rise around 560 points.
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In addition, Tesla (TSLA) shares were up 7% premarket to $255.11 after CEO Elon Musk promised to cut his work on government activities and refocus more attention on his company.
Tesla reported a 71% decline in first-quarter profits because of competitive problems outside the United States and the reputational damage Musk suffered from his activities with the so-called Department of Governmental Efficiency.
Related: Veteran analyst sends blunt 11-word message on gold stocks
While investors appear bullish, the question is whether they are seeing a true reversal of fortune today. China said it was willing to talk “but not under duress,” The Wall Street Journal reported.
Traders working atNew York Stock Exchange in March.
Michael M. Santiago/Getty Images
Plus, the Fed controversy can come up again at a moment’s notice if the President decides he’s mad enough. Trump’s comments last week that he might fire the Fed chairman added downward pressure on stocks, particularly on Monday.
Trump has criticized the Fed for not cutting interest rates quickly enough as the economy weakens. Investors are betting the Fed will start to move rates lower at its June 17-18 meeting, with as many as four cuts between now and the end of the year.
Related: Microsoft to target low-performing employees with harsh policies
Two big economic reports on tap
In addition, investors face a number of economically sensitive purchasing managers index reports from Standard & Poor’s today. These are important because they measure contracts signed for services deals and manufacturing.
Plus a report on new-home sales is due at 10 a.m.
More Wall Street Analysts:
Analyst unveils startling Nvidia stock forecast amid tariffsWall Street sounds alarm on Tesla, Elon Musk problemAnalysts see challenges for Apple over tariffs
Another big day of earnings
Boeing (BA) shares jumped more than 6% after its first quarter earnings were better than expected. The aerospace giant has been struggled in the aftermath of management shakeups, quality-control issues and intense competition from Airbus SE.
Also reporting on Wednesday:
Vernova (GEV) , the maker of gas turbines, produced a quarterly profit and shares were higher. IBM IBM after the close.Service Now (NOW) after the close.Intel (INTC) reports after the close. Bloomberg reported the company may report it’s cutting more than 20% of its jobs.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
