U.S. equity futures surged in early trade on Tuesday after former President Donald Trump quelled speculation around the Federal Reserve’s leadership, stating he has “no intention of firing” Fed Chair Jerome Powell. His remarks provided a dose of stability to market sentiment, lifting all major U.S. index futures in pre-market action.
Dow futures jumped 451 points, or 1.15%, to trade at 39,808, implying a strong open of +454.29 points based on the fair value of 39,353.71.
S&P 500 futures rose 78.25 points or 1.47%, reaching 5,393, with an implied open of +77.21 points above the fair value of 5,315.79.
NASDAQ futures also surged, climbing 303.50 points, or 1.65%, to 18,688.50, with the implied open pegged at +300.89 points from the fair value of 18,387.61.
Markets reacted positively to Trump’s comments, which come amid heightened scrutiny of the Fed’s interest rate strategy ahead of a potentially pivotal election year. “I have no intention of firing him,” Trump said in reference to Powell. “I would like to see him be a little more active in terms of his idea to lower interest rates… but no, I have no intention to fire him.”
The assurance boosted confidence across asset classes, with risk appetite improving globally. Asian markets opened in the green, and Indian markets are also expected to post a strong start as GIFT Nifty signals a 250+ point gap-up open.
Investors will now closely track upcoming U.S. economic data, corporate earnings, and any further commentary from Fed officials for near-term cues. The latest rally in futures suggests a rebound in equities could be on the cards after last week’s volatility.
