Stock futures are showing a downward trend this morning as investors return from what was a winning week for the markets. However, several key developments are shaping the landscape for the day ahead.
In a significant announcement, Federal Reserve Chair Jerome Powell revealed he is under criminal investigation related to renovations at the Fed’s Washington, D.C., headquarters. This investigation comes amid ongoing tensions with President Donald Trump over interest rate policies. Powell indicated that federal prosecutors are scrutinizing a $2.5 billion renovation project and his congressional testimony. In a video statement, he emphasized that the investigation stems from the Fed’s commitment to setting rates based on public interest rather than presidential pressure. Powell’s comments have led to a decline in stock futures overnight, while gold futures have surged, reflecting increased investor concerns about the Fed’s independence.
On the corporate front, attention is focused on the banking sector as investors brace for a new round of earnings reports. JPMorgan Chase is set to kick off the earnings season tomorrow, coinciding with the 20th anniversary of CEO Jamie Dimon’s tenure. As he approaches retirement age, speculations are growing about the timing of his succession amid concerns about the bank’s future dominance without him. In premarket trading, bank stocks saw a dip following Trump’s suggestion of a temporary 10% cap on credit card interest rates.
In retail news, Walmart has partnered with Google to enhance customer shopping experiences using the Gemini AI assistant. This collaboration aims to facilitate product discovery and purchasing at Walmart and its Sam’s Club warehouse chain. Details on when these new features will roll out or the financial arrangements between the two companies remain unclear.
Looking to the aviation industry, Boeing is anticipated to report its highest airplane delivery numbers since 2018 this week, signalling a positive turnaround for the company after a series of safety crises. Boeing’s plans to increase production of the 737 Max and 787 Dreamliners could also play a pivotal role in its return to profitability, aligning with Wall Street’s expectations for this year. In related news, Allegiant Airlines announced its acquisition of rival Sun Country for $1.5 billion, highlighting ongoing consolidation in the budget airline sector.
Finally, advancements in obesity treatment are on the horizon as Novo Nordisk has begun distributing a daily GLP-1 pill for weight loss, moving away from the traditional weekly injections. This shift, with a similar product from Eli Lilly expected soon, could broaden access to weight-loss treatments for patients who were deterred by injectable options.
For those looking at upcoming economic indicators, key reports are scheduled this week, including the Consumer Price Index and earnings from major banks and airlines.
