The major U.S. index futures on the Dow Jones, S&P and Nasdaq are currently pointing to a sharply higher open on Wednesday, with stocks likely to extend the seen over the course of the previous session.

The upward momentum on Wall Street comes after President Donald Trump appeared to soften his stance on Federal Reserve Chair Jerome Powell.

“I have no intention of firing him,” Trump told reporters on Tuesday but reiterated he would like to see Powell and the Fed resume lowering interest rates.

Trump’s attack on Powell, including calling him a “major loser” as recently as Monday, had led to anxiety on Wall Street about the Fed’s independence.

The president also suggested he’s willing to take a less confrontational approach to trade talks with China, predicting the current 145 percent tariff on Chinese imports will “come down substantially.”

The markets may also benefit from a positive reaction to earnings news from Tesla (NASDAQ:TSLA), with the electric vehicle maker surging by 7.9 percent in pre-market trading.

The jump by Tesla comes after the company reported weaker than expected first quarter results but CEO Elon Musk said amount of time he spends with the Department of Government Efficiency will decline “significantly” beginning in May.

Stocks moved sharply higher over the course of the trading day on Tuesday, regaining ground following the sell-off seen in the previous session. The major averages all showed significant moves to the upside, with the Dow and the Nasdaq closing higher for the first time in five days.

The major averages surged in morning trading and remained firmly positive throughout the afternoon. The Dow soared 1,016.57 points or 2.7 percent to 39,186.98, the Nasdaq spiked 429.52 points or 2.7 percent to 16,300.41 and the S&P 500 shot up 129.56 points or 2.5 percent to 5,287.76.

The early rally on Wall Street came as some traders looked to pick up stocks at reduced levels following the steep drop seen on Monday.

Stocks showed a substantial move to the downside during Monday’s session amid lingering trade war concerns and Trump’s continued attacks on Powell.

Further buying interest was generated in reaction to reports indicating Treasury Secretary Scott Bessent told a closed-door investor summit he expects the trade dispute between the U.S. and China to de-escalate.

Citing people who attended the session at an event hosted by JPMorgan Chase (NYSE:JPM), Bloomberg reported Bessent said negotiations haven’t started but that a trade deal with China is possible.

A person in the room also told CNBC that Bessent called the current status quo unsustainable and predicted there will “de-escalation” in the “very near future.”

The markets also benefitted from a positive reaction to some of the latest earnings news, with shares of 3M (NYSE:MMM) soaring by 8.1 percent after the manufacturing conglomerate reported better than expected first quarter results.

Aircraft engine supplier GE Aerospace (NYSE:GE) also spiked by 6.1 percent after reporting first quarter earnings that exceeded analyst estimates.

Housing stocks showed a substantial move to the upside over the course of the session, driving the Philadelphia Housing Sector Index up by 3.7 percent.

Significant strength was also visible among financial stocks, with the NYSE Arca Broker/Dealer Index and the KBW Bank Index surging by 3.4 percent and 3.3 percent, respectively.

Retail, biotechnology and oil producer stocks also saw considerable strength, while gold stocks were among the few groups to buck the uptrend amid a pullback by the price of the precious metal.