U.S. stock index futures fell on Wednesday evening, as markets remained largely on edge over President Donald Trump’s trade tariffs and growing expectations that the Federal Reserve will not cut interest rates soon.
Focus was now squarely on a host of upcoming quarterly earnings, with chipmaking bellwether TSMC (NYSE:TSM) and streaming giant Netflix (NASDAQ:NFLX) to report on Thursday.
Futures fell after a mildly positive session on Wall Street, after Trump assured investors that he did not plan to fire Fed Chair Jerome Powell, despite the president and his allies presenting an increasingly negative rhetoric towards the central banker.
Wall Street also took some support from a host of positive bank earnings this week, although a cautious outlook limited overall optimism.
S&P 500 Futures fell 0.2% to 6,292.50 points, while Nasdaq 100 Futures fell 0.2% to 23,039.25 points by 19:58 ET (23:58 GMT). Dow Jones Futures fell 0.2% to 44,385.0 points.
Beyond corporate earnings, retail sales and jobless claims data is also due later in the day.
Trump tariff impact in focus as August 1 deadline looms Markets fretted over the impact of Trump’s tariffs, especially as an August 1 deadline for their imposition drew close.
The president said on Wednesday that a deal with India was close, after the U.S. signed a trade deal with Indonesia earlier in the week.
Talks with the European Union, which faces a 30% tariff, were also ongoing, although the EU lambasted the 30% duty and warned of retaliation.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Trump has repeatedly suggested that he will not extend his August 1 deadline. The president also intends to impose a 200% tariff on all pharmaceutical imports.
Markets are concerned that Trump’s tariffs will be inflationary, given that they will be borne by U.S. importers. Hotter-than-expected consumer inflation data for June furthered these concerns, although softer-than-expected producer inflation data offered some relief.
But inflation remained sticky, likely giving the Fed little cause to cut interest rates soon.
Wall St relieved by Trump stating he will not fire Powell Wall Street indexes closed marginally higher on Wednesday after Trump clarified that he did not intend to fire Fed Chair Jerome Powell, even as he kept up his attacks on the chair and demanded immediate rate cuts.
Trump and his allies were seen ramping up calls for Powell’s removal this week, sparking concerns over the Fed’s independence. But these fears were somewhat quelled by Trump’s clarification, although he did not entirely dismiss the idea of Powell’s premature dismissal.
The S&P 500 rose 0.3% to 6,263.69 points, while the NASDAQ Composite rose 0.3% to 20,730.49 points. The Dow Jones Industrial Average rose 0.5% to 44,254.78 points.
TSMC, Netflix set to report Q2 earnings Wall Street was also encouraged by a slew of positive bank earnings on Tuesday and Wednesday, although executives from most major banks presented a cautious outlook for the coming months.
