US stock futures edged up on Thursday as bets on interest-rate cuts rose after President Trump hinted he was looking at replacing Federal Reserve Chair Jerome Powell earlier than expected.
Dow Jones Industrial Average futures (YM=F) nudged 0.2% higher, while S&P 500 futures (ES=F) rose about 0.2%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) gained 0.4%.
Trump’s frustration with Powell’s “wait and see” approach to interest rates has led him to consider announcing his pick to succeed the Fed chair in September or October, The Wall Street Journal reported. Powell’s term ends in May 2026, so that would be far earlier than the typical three or four month transition period.
Trump said earlier on Wednesday he is actively considering replacements for Powell, adding “I know within three or four people who I’m going to pick.”
Powell wrapped up two days of testifying before the House and the Senate, where he stressed to lawmakers the central bank is “well-positioned” to wait and see how Trump’s tariffs are impacting the economy before reducing rates.
Stocks wobbled on Wednesday, with the S&P 500 finishing just below a record high. Investors’ jubilation from the day before, sparked by an end to hostilities between Israel and Iran, moderated even as Trump declared the conflict “over.” Nvidia (NVDA) stock, meanwhile, leaped to a record high.
The main event for Wall Street to end the week lands Friday with the release of the Fed’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) report. Investors will be watching closely for any signs that Trump’s tariffs pushed prices higher.
LIVE 2 updates
