Futures for the S&P 500 and Nasdaq experienced a boost on Tuesday, driven by the Senate’s confirmation of Stephen Miran as a Federal Reserve board governor. This decision comes on the heels of another remarkable day for Wall Street, which saw the benchmark S&P 500 and the tech-heavy Nasdaq Composite achieving new all-time highs.
Specifically, S&P 500 futures rose by 0.2%, while Nasdaq 100 futures increased by 0.3%. In contrast, futures for the Dow Jones Industrial Average remained mostly flat. The Senate’s narrow confirmation vote for Miran, which passed 48-47 on Monday evening, positions him to play a pivotal role in influencing the central bank’s upcoming decisions regarding interest rates, particularly as the Fed’s policy meeting begins on Tuesday.
While Miran has publicly committed to acting independently in his new role, his planned leave of absence from his position as a White House advisor raises concerns about the potential impact on the Fed’s independence. This is particularly pertinent given reports of President Trump’s intentions to potentially dismiss Fed governor Lisa Cook.
Monday’s trading session was marked by rising stocks, propelling the S&P 500 and Nasdaq to new peaks, fueled by ongoing US-China trade discussions taking place in Madrid and the widespread expectation that the Fed will announce a rate cut during its upcoming meeting.
On the economic front, investors are anticipating the latest retail sales figures, which will provide valuable insights into consumer behavior amidst persistent inflation and a fluctuating labor market.
In premarket trading on Tuesday, Tesla’s stock rose by 2%, recovering from earlier year-to-date losses. This surge followed news that CEO Elon Musk had purchased shares of the electric vehicle manufacturer for the first time since 2020.
Looking ahead, the Federal Reserve’s decision on interest rates is set to be announced on Wednesday, with a notable consensus among market participants favoring a rate cut. Current estimates suggest a 96% likelihood of a 25 basis-point cut, and a mere 4% chance of a larger reduction.
Additionally, on Friday, President Trump and Chinese President Xi Jinping are expected to engage in discussions surrounding trade and a new framework for a TikTok deal.
In the broader financial landscape, U.S. Treasurys are currently outperforming their global counterparts amid expectations of a new cycle of easing prompted by the Federal Reserve. This shift in sentiment marks a reversal from previous bearish trends. Meanwhile, gold prices have reached a new record as the Fed’s imminent decision looms large over market activities.
