Stocks Rise on De-Escalation Optimism – Europe Market Wrap

Stocks and bonds rose as a wave of relief swept through global markets after the Trump administration defused some of the tension that has rattled investors.

Wall Street was set to build on the biggest equity gains in two weeks, with S&P 500 futures climbing 2.5% after President Donald Trump allayed fears that he plans to fire Federal Reserve Chair Jerome Powell. Optimism of easing US-China trade tensions added to the risk- on mood.

Tesla rose about 7% in premarket trading after Chief Executive Officer Elon Musk said he will pull back from his work with the US government to focus on the electric-vehicle maker. Europe’s Stoxx 600 index marched 1.7% higher.

Treasuries mostly rallied as worries about threats to Powell’s position faded. Benchmark 10-year yields dropped 10 basis points to 4.30%. A gauge of dollar strength steadied after rallying from a 16-month low. Bitcoin stormed above $90,000 for the first time since early March. Gold fell as demand for havens cooled. Oil extended its rebound.

Trump’s comments on the Fed chief late Tuesday are a walk-back from opinions expressed in the past week that sparked concerns about the US central bank’s independence. On the trade front, Trump and Treasury Secretary Scott Bessent said that a standoff with China can be de-escalated.

It’s also a busy day for earnings, with AT&T Inc. rising in the premarket after attracting more new wireless subscribers than analysts expected in the first quarter. SAP SE soared the most in six years after profit at Europe’s most valuable company topped analyst estimates.