Wall Street Rallies on Trump’s Softer Tone and Tesla Boost

U.S. stock index futures climbed Tuesday night following remarks from President Donald Trump that hinted at easing tensions with both China and the Federal Reserve. The market responded positively to Trump’s softened stance, sparking hopes of a deescalation in trade conflicts and Fed-related tensions.

By 19:15 ET, S&P 500 Futures were up 2% at 5,422.0 points, Nasdaq 100 Futures rose 2.2% to 18,795.0, and Dow Jones Futures gained 1.7% to 40,012.0.

Stocks rallied after Trump clarified he had no intention of firing Fed Chair Jerome Powell, despite previously criticizing him for not cutting rates. He also signaled a more conciliatory tone on China, saying tariffs would be reduced “substantially,” though not entirely removed. These comments followed Treasury Secretary Scott Bessent’s statement that the trade war with China was “unsustainable,” fueling investor optimism.

Major indexes surged in response: the S&P 500 jumped 2.5% to 5,287.75, the Nasdaq rose 2.7% to 16,300.42, and the Dow climbed 2.7% to 39,186.98.

Tesla shares surged 5.1% to $237.97 in after-hours trading, despite weak Q1 results. CEO Elon Musk announced he would reduce his government-related duties and focus more on Tesla starting in May. Investors welcomed the move, amid concerns over Musk’s political distractions and Tesla’s recent sales slump.

The broader market was also lifted by strong earnings from major firms including Verizon, RTX, Lockheed Martin, and Moody’s. Attention now turns to Alphabet’s earnings report due Thursday, which could further influence tech sentiment.

Optimism over trade talks, Fed policy stability, and positive earnings have collectively reignited risk appetite across Wall Street.