S&P and Nasdaq futures climbed on Tuesday after the Senate confirmed President Trump’s pick, Stephen Miran, as a Federal Reserve board governor, following another record-setting day on Wall Street.
Futures attached to the Dow Jones Industrial Average (YM=F) were mostly flat, the benchmark S&P 500 (ES=F) edged higher 0.2%, and the tech-heavy Nasdaq 100 (NQ=F) rose 0.3%.
The Senate narrowly confirmed Stephen Miran, President Trump’s Fed pick, in a 48-47 vote on Monday evening — a day before the central bank’s policy meeting kicks off Tuesday. The move has put Miran in place just in time to cast a crucial vote on the direction of interest rates.
Though Miran has said he would act independently, his intention to take a leave of absence — but not resign — from his current role as a White House advisor has raised questions about the future of Fed independence, especially as Trump pursues firing Fed governor Lisa Cook.
In day trading Monday, stocks rose, lifting the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) to new record highs. Ongoing US-China trade talks in Madrid and anticipation Fed officials will announce a rate cut at its next meeting boosted sentiment.
In an otherwise light week on economic data, on Tuesday, investors will receive the latest figures on retail sales. The update will offer insight into how consumers are faring amid sticky inflation and a wobbly labor market.
Tesla (TSLA) stock rose 2% on Tuesday in premarket trading after wiping out its year-to-date losses on Monday following CEO Elon Musk purchased shares of the EV maker for the first time since 2020.
The main event of the week lands Wednesday when the Fed will announce its decision on rates. Markets are confident policymakers will cut rates due to a slowdown in the labor market, despite persistently high prices. Traders currently see a 96% chance of a 25 basis-point cut and a 4% chance of a jumbo reduction.
On Friday, Trump and Chinese President Xi Jinping are expected to discuss trade and a new framework for a TikTok deal.
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