Stock futures were under pressure Thursday morning as Donald Trump’s war of words with the Federal Reserve escalated. The former president is calling for big rate cuts and even demanded Fed Governor Lisa Cook resign over alleged mortgage fraud. Cook rejected that call, but the feud is raising doubts about the central bank’s independence ahead of Jerome Powell’s speech in Jackson Hole tomorrow.
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The clash comes at a sensitive moment. Powell has already been criticized by Trump for not lowering interest rates more quickly. Investors are bracing for Powell’s remarks, which could set the tone for markets going into September’s policy meeting.
Tech Rout Adds to the Pressure
At the same time, Wall Street’s tech darlings are still sliding. The “Magnificent Seven” stocks — Amazon (AMZN), Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), Meta (META), Nvidia (NVDA), and Tesla (TSLA) — sold off for a second straight day. These companies have fueled much of this year’s market gains, but now investors are questioning whether the artificial intelligence boom has overheated.
Trump’s own policies are also in play. His administration recently confirmed it is considering taking a stake in Intel. This raised questions about the outlook for tech and government involvement in the sector.
Other Movers
Earnings from retailers are another theme this week. Walmart (WMT) and Ross Stores (ROST) report today after Home Depot and Lowe’s delivered results earlier this week that impressed investors.
Futures reflected the caution. Dow Jones Industrial Average futures fell 131 points, or 0.3%. S&P 500 futures slipped 0.2%, while Nasdaq 100 futures were off 0.1%. The yield on the 10-year Treasury was steady at 4.311%, and the two-year held at 3.767%.
Key Takeaway
Markets are being pulled in two directions. Trump’s escalating fight with the Fed is fueling uncertainty about interest rates and policy, while the tech sector’s selloff is shaking confidence in this year’s market leaders. Together, those pressures are keeping Wall Street on edge as it heads into Powell’s big speech in Jackson Hole.
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