Mubasher: The shares of Tesla opens new tab jumping 7.2% in premarket trading on Wednesday, 23 April, while the US stock index futures pointed to a sharply higher open following President Donald Trump’s plans, Reuters reported.
A day earlier on Tuesday, Trump said he had "no intention" of firing Federal Reserve Chair Jerome Powell, backpedaling after his comment that the Fed chair's termination could not come "fast enough" drew heavy criticism.
Trump also raised hopes for a trade deal with China, while markets welcomed the change in the President's tone.
Meanwhile, the EV-maker Tesla reported a profit for its core auto business that topped rock-bottom expectations, while CEO Elon Musk said he would step back from his involvement in the Trump administration to focus on running his numerous companies.
The comments on tariffs and backtracking on threats against Powell "set the stage" for the day's equity rally, Reuters cited Leslie Thompson, CIO at Spectrum Wealth Management, who added: "We're going in between upside and downside exhaustion in the market, but certainly it's trading on headlines."
At 08:40 a.m. ET, Dow E-minis were up 767 points, or 1.95%.
S&P 500 E-minis were up 134.75 points, or 2.54%.
Nasdaq 100 E-minis were up 561.75 points, or 3.06%.
Megacap tech stocks rose broadly, with Nvidia opens new tab gaining 5.36%.
Apple opens new tab and Meta Platforms opens new tab rose 3.4% and 5.5%, respectively, despite being fined for breaching European Union law.
“Trump's criticism of Powell had hit markets already battered by his erratic trade policies, with the S&P 500 (.SPX), opens new tab down nearly 14% from its February record high. Federal Reserve policymakers have reiterated caution in easing policy, given the lack of clarity on the impact of his trade policies,” according to Reuters.
Other stocks like Boeing opens new tab gained 5.5% after its quarterly results, while Boston Scientific opens new tab gained 7.8% after topping revenue and profit estimates in the first quarter (Q1).
Intel opens new tab rose 5.6% after a report said the chipmaker was set to cut over 20% of its workforce.
