US stock futures saw an uptick on Tuesday following the Senate’s confirmation of Stephen Miran as a Federal Reserve board governor, a decision made in the wake of another record-setting day on Wall Street. Futures tied to the Dow Jones Industrial Average climbed slightly, the S&P 500 increased by 0.1%, and the tech-driven Nasdaq 100 rose by 0.2%.
The Senate’s confirmation of Miran came through a narrow 48-47 vote on Monday, coinciding with the start of a key policy meeting for the Federal Reserve on Tuesday. This appointment places Miran in a pivotal role as the committee prepares to discuss the future trajectory of interest rates. Despite Miran’s assurance of acting independently in his new position, his plan to take a leave of absence—from his current role as a White House advisor—raises concerns regarding the potential implications on the Fed’s independence, especially in light of President Trump’s intentions to dismiss Fed governor Lisa Cook.
On Monday, stocks surged, contributing to the S&P 500 and Nasdaq Composite reaching new all-time highs. Positive sentiment was fueled by ongoing trade negotiations between the US and China taking place in Madrid, alongside widespread expectations that Fed officials will announce a rate cut during their forthcoming meeting.
This week is relatively light regarding economic data, with investors awaiting retail sales figures on Tuesday. The data is anticipated to provide a clearer view of consumer spending amid persistent inflation and a shaky labor market.
However, the main focus this week is on the Federal Reserve’s upcoming announcement on interest rates scheduled for Wednesday. Market analysts are leaning toward a rate cut, with current predictions suggesting a 96% probability of a 25 basis-point reduction, while the chance of a more significant cut remains at a mere 4%.
Looking ahead to the end of the week, President Trump and Chinese President Xi Jinping are set to engage in discussions concerning trade, including the potential new framework for a TikTok deal.
In the broader market context, US Treasurys are currently outpacing their global counterparts, driven by expectations of a new easing cycle from the Federal Reserve, reflecting a shift in investor sentiment. Meanwhile, gold has also reached record levels, influenced by the anticipated Fed decision.
