June S&P 500 E-Mini futures (ESM25) are up +2.01%, and June Nasdaq 100 E-Mini futures (NQM25) are up +2.51% this morning, extending yesterday’s rally as sentiment got a boost after the Trump administration’s move to alleviate some of the tensions unsettling investors.
Investors found relief after U.S. President Donald Trump said he doesn’t plan to fire Federal Reserve Chair Jerome Powell. Also, hopes for easing U.S.-China trade tensions further boosted risk appetite. President Trump told reporters on Tuesday that U.S. tariffs of 145% on Chinese goods will be reduced “substantially” if the two sides can reach a deal. “We’re going to be very nice and they’re going to be very nice, and we’ll see what happens,” Trump said.
