Tech Stocks Jump as Trump Softens Stance on Fed and Trade

Major U.S. equities indexes pushed higher after President Trump indicated that he does not intend to fire Jerome Powell from his role as Federal Reserve chair. White House officials also indicated that the U.S. could adopt a more measured approach to tariffs on imports from China, suggesting a potential easing of trade tensions between the world’s two largest economies.

The S&P 500 added 1.7% in the midweek trading session, while the Dow closed 1.1% higher. The tech-heavy Nasdaq soared 2.5%. 

Amphenol (APH), a manufacturer of antennas and high-speed electronic cables, topped revenue and adjusted earnings per share (EPS) estimates in its first-quarter earnings report. The company also provided an upbeat forecast for the current quarter, noting opportunities across end markets and highlighting how innovation and strategic acquisitions have helped expand its product offering. Amphenol shares surged 8.2% to secure the top performance in the S&P 500 on Wednesday.

The technology sector outperformed on Wednesday, bolstered by increased optimism for improvements in the U.S.-China trade relationship. Super Micro Computer (SMCI) announced an expansion of its collaboration with Japanese tech firm Fujitsu, which will deploy a new Supermicro server as part of its large language model (LLM) project. Supermicro shares jumped 7.6%.

Meanwhile, Palantir Technologies (PLTR) shares gained 7.3%. The data analytics software firm said it will partner with defense contractor Northrop Grumman (NOC) to develop combat vehicles that leverage artificial intelligence (AI) technology. Northrop Grumman shares edged 1.9% higher on Wednesday, marking a minor recovery from the heavy decline posted in the prior session following a lackluster earnings report.

Shares of solar technology firm Enphase Energy (ENPH) plunged 15.7%, losing the most of any S&P 500 stock. The company posted lower-than-expected sales and profits for the first quarter, and Enphase’s CEO noted that tariffs could weigh on future results. In particular, the company sources battery cell packs from China and anticipates that levies on these imports will pressure its gross margins in upcoming quarters.

Although heating, ventilation, and air conditioning (HVAC) specialist Lennox International (LII) topped quarterly sales and profit estimates, its full-year guidance fell short of consensus forecasts, and its shares fell 9.0%. The CEO stressed that Lennox is adapting to the challenging economic environment with pricing adjustments as it aims to maintain the stability of its supply chain.

Shares of oilfield services and energy technology firm Baker Hughes (BKR) sank 6.4% on Wednesday following a mixed quarterly earnings release. Although profits topped forecasts, revenues came in below expectations. The company faces an uncertain macroeconomic backdrop and softness in oil prices that could hinder its clients’ production activities.