On Tuesday, President Donald Trump made it official that he plans to stick with Federal Reserve Chairman Jerome Powell. This statement marks a striking reversal from his previous attacks on Powell’s leadership. Trump made the remarks during a press conference at the Oval Office, indicating a change in tone regarding the central bank leader, who has faced scrutiny from the President in recent months.
Trump’s decision is particularly surprising given that Powell’s term still runs until May 2026. The President insidiously called Powell a “big loser” just last week. He has been equally vocal in demanding interest rate cuts. The President’s endorsement of Powell was music to investors’ ears, as this endorsement shot up stock futures by 600 points. As of Tuesday evening, the Dow Jones Industrial Average futures had skyrocketed 664 points, or 1.7%. The S&P 500 index and the Nasdaq Composite made impressive strides, both up more than 2% after Trump’s remarks.
Stock futures were all too happy to oblige, sending S&P 500 futures soaring 1.4% and Nasdaq 100 futures roaring 1.8% higher. The market’s enthusiastic response underscores the significance of Trump’s remarks, which alleviated concerns among investors regarding future monetary policy.
Along with his critique of Powell, here’s what else Trump said on trade recently. He declared a 90-day moratorium on the majority of his “reciprocal” tariffs. Even in this area, he’s still stuck with a burdensome 145% duty on Chinese imports. This decision could have far-reaching implications on market dynamics as investors will be looking closely at the Fed’s impact on the economy.
Yet the rosy outlook is not universal among sectors. Tesla’s stock dipped slightly in extended trading after the company reported first-quarter results that fell short of analysts’ expectations for both earnings and revenue. The electric vehicle giant blew away expectations, reporting an adjusted earnings beat of 27 cents per share on revenue of $19.34 billion. Analysts were looking for even bigger beats, with earnings of 39 cents per share and revenue of $21.11 billion.
Enphase Energy’s stock plummeted more than 12%. That drop came just after the company reported quarterly results that missed earnings expectations on Wall Street. Intuitive Surgical was not without headwinds, with ISRG stock losing nearly 6% as part of overall market volatility.
While the president’s remarks have given a short-term boost to investor sentiment, uncertainty continues to churn through the markets. Jamie Cox remarked on market dynamics, stating, “There is a ton of money hiding out in gold at the moment, so there’s plenty of unproductive money that will find its way back into the market at some point.” Meanwhile, Scott Bessent emphasized broader concerns about sustainability in current economic conditions, stating, “No one thinks the current status quo is sustainable.”
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