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Reuters
8 hours ago
- Business
- Reuters
Wall Street set for weekly gains as Trump's interim Fed pick maintains easing hopes
Aug 8 (Reuters) - Wall Street advanced on Friday, taking indexes closer to a strong weekly finish, after President Donald Trump's interim pick for a Federal Reserve governor post kept expectations alive for a dovish policy. At 11:29 a.m. ET, the Dow Jones Industrial Average (.DJI), opens new tab rose 119.33 points, or 0.27%, to 44,087.97, the S&P 500 (.SPX), opens new tab gained 39.20 points, or 0.62%, to 6,379.20 and the Nasdaq Composite (.IXIC), opens new tab gained 167.47 points, or 0.79%, to 21,410.34. Trump on Thursday nominated Council of Economic Advisers Chair Stephen Miran to a short-term board seat following Adriana Kugler's abrupt exit last week, as he narrowed his shortlist to succeed Fed Chair Jerome Powell, whose term ends on May 15. Miran, who is often aligned with Trump, has previously implied that Powell was "too late" in lowering rates. On Thursday, Bloomberg News also reported that Fed Governor Christopher Waller was emerging as a leading contender for the chair post. Investors remain conflicted about the Fed's leadership overhaul, balancing concerns about the institution's independence against growing anticipation of deeper rate cuts ahead. "The reality is the president can't force a chair to step down or put any additional pressure to make the governors to force rates lower," said Phil Blancato, CEO, Ladenburg Thalmann Asset Management. "This is about him putting in folks who are going to be more dovish and ultimately (lead) to deeper rate cuts, whether they're justified or not." In earnings-related moves, Gilead Sciences (GILD.O), opens new tab surged 8.6% following its raising of the full-year financial outlook. Expedia (EXPE.O), opens new tab jumped 4.4% after raising its annual forecast for gross bookings and revenue growth. Trade Desk (TTD.O), opens new tab sank about 40%, the biggest single-day drop on record, as the ad-tech firm reported a sharp slowdown in second-quarter revenue growth. Pinterest (PINS.N), opens new tab tumbled 8.7% after the social media platform missed analysts' estimates for second-quarter profit. Most S&P 500 sectors rose, with a 1.1% jump in communication services (.SPSY), opens new tab leading the gains on Friday. Consumer discretionary (.SPLRCD), opens new tab was on track to be the week's top‑performing sector. Healthcare (.SPXHC), opens new tab was down 1.2% for the week, dragged primarily by Eli Lilly, whose shares tumbled in the previous session after late-stage study results showed its experimental GLP-1 pill lagged that of Novo Nordisk's ( opens new tab. Meanwhile, both the S&P 500 and the Nasdaq were on track for their best week in over a month, while the Dow was set to log adequate gains. Traders now peg about a 90% chance of the first rate cut hitting next month, according to CME Group's Fedwatch tool, with futures pointing to at least two cuts by year-end. St. Louis Fed President Alberto Musalem said the central bank must balance risks to its inflation and jobs goals before deciding whether to cut interest rates. Investors also monitored the seemingly debilitating U.S.-India trade relations as New Delhi shelved fresh U.S. arms and aircraft purchases, according to three Indian officials, after Trump raised tariffs on Indian exports to 50% this week - among the highest of any U.S. trading partner. Advancing issues outnumbered decliners by a 1.42-to-1 ratio on the NYSE and by a 1.15-to-1 ratio on the Nasdaq. The S&P 500 posted 21 new 52-week highs and 13 new lows, while the Nasdaq Composite recorded 72 new highs and 72 new lows.
Zawya
12 hours ago
- Business
- Zawya
Trump's Fed shake-up sends Wall St futures higher on rate easing hopes
U.S. stock index futures rose on Friday after President Donald Trump's temporary pick for a Federal Reserve governor fueled expectations of a more dovish policy ahead. At 6:52 a.m. ET, S&P 500 E-minis were up 19.5 points, or 0.31%, Nasdaq 100 E-minis were up 74.5 points, or 0.32%, and Dow E-minis were up 107 points, or 0.24%. Investors were being whipsawed by mixed signals over the Fed's future, as Trump's pressure stirs worries about the central bank's independence and a potential leadership reshuffle that could skew policy looser. On Thursday, the U.S. president said he will nominate Council of Economic Advisers chair Stephen Miran for a short-term Fed seat while the White House hunts for a permanent governor and a new chair. Miran replaces Governor Adriana Kugler following her surprise resignation last week. The S&P 500 and the Dow cooled in the last session after Bloomberg News reported Fed Governor Christopher Waller was emerging as a leading contender for the chair. "He's (Miran) widely expected to join Waller and Michelle Bowman in the dovish camp for the few meetings he will attend, with a non-negligible risk he might try to build consensus for a 50 basis point move," ING analysts send in a note. The Nasdaq and the S&P 500 were on track for their best week in over a month, buoyed by tech names after signs they could sidestep new chip tariffs by building more in the United States. Apart from tech stocks, equities have ridden a sharp reset in rate expectations and a flurry of upbeat earnings. The CME FedWatch tool shows traders see a 90% chance of the first rate cut of the year coming next month - and futures point to at least two cuts by year-end. On Thursday, the S&P 500 and the Dow ended lower, weighed down by a 14.1% drop in Eli Lilly after results from a late-stage study on its experimental GLP-1 pill fell behind that of Novo Nordisk's. Sector-wise, consumer discretionary could top the leaderboard this week, while healthcare lags, weighed down mainly by Eli Lilly. Meanwhile, U.S. tariffs on a bunch of trading partners took effect at midnight on Thursday. Tokyo's trade negotiator said Washington will amend a presidential executive order to remove overlapping tariffs on Japanese goods, terming it as oversight. In earnings-related moves, Trade Desk sank 30% in premarket trading after the ad-tech firm reported a sharp slowdown in second-quarter revenue growth. Pinterest tumbled 11% as the social media platform missed analysts' estimates for second-quarter profit. Microchip Technology lost 7.9% after the chipmaker's first-quarter results failed to impress investors. St. Louis Fed President Alberto Musalem is scheduled to speak later at 10:20 a.m. ET. (Reporting by Nikhil Sharma and Pranav Kashyap in Bengaluru; Editing by Maju Samuel)
Reuters
13 hours ago
- Business
- Reuters
Trump's Fed shake-up sends Wall St futures higher on rate easing hopes
Aug 8 (Reuters) - U.S. stock index futures rose on Friday after President Donald Trump's temporary pick for a Federal Reserve governor fueled expectations of a more dovish policy ahead. At 6:52 a.m. ET, S&P 500 E-minis were up 19.5 points, or 0.31%, Nasdaq 100 E-minis were up 74.5 points, or 0.32%, and Dow E-minis were up 107 points, or 0.24%. Investors were being whipsawed by mixed signals over the Fed's future, as Trump's pressure stirs worries about the central bank's independence and a potential leadership reshuffle that could skew policy looser. On Thursday, the U.S. president said he will nominate Council of Economic Advisers chair Stephen Miran for a short-term Fed seat while the White House hunts for a permanent governor and a new chair. Miran replaces Governor Adriana Kugler following her surprise resignation last week. The S&P 500 and the Dow cooled in the last session after Bloomberg News reported Fed Governor Christopher Waller was emerging as a leading contender for the chair. "He's (Miran) widely expected to join Waller and Michelle Bowman in the dovish camp for the few meetings he will attend, with a non-negligible risk he might try to build consensus for a 50 basis point move," ING analysts send in a note. The Nasdaq and the S&P 500 were on track for their best week in over a month, buoyed by tech names after signs they could sidestep new chip tariffs by building more in the United States. Apart from tech stocks, equities have ridden a sharp reset in rate expectations and a flurry of upbeat earnings. The CME FedWatch tool shows traders see a 90% chance of the first rate cut of the year coming next month - and futures point to at least two cuts by year-end. On Thursday, the S&P 500 (.SPX), opens new tab and the Dow (.DJI), opens new tab ended lower, weighed down by a 14.1% drop in Eli Lilly (LLY.N), opens new tab after results from a late-stage study on its experimental GLP-1 pill fell behind that of Novo Nordisk's ( opens new tab. Sector-wise, consumer discretionary (.SPLRCD), opens new tab could top the leaderboard this week, while healthcare (.SPXHC), opens new tab lags, weighed down mainly by Eli Lilly. Meanwhile, U.S. tariffs on a bunch of trading partners took effect at midnight on Thursday. Tokyo's trade negotiator said Washington will amend a presidential executive order to remove overlapping tariffs on Japanese goods, terming it as oversight. In earnings-related moves, Trade Desk (TTD.O), opens new tab sank 30% in premarket trading after the ad-tech firm reported a sharp slowdown in second-quarter revenue growth. Pinterest (PINS.N), opens new tab tumbled 11% as the social media platform missed analysts' estimates for second-quarter profit. Microchip Technology (MCHP.O), opens new tab lost 7.9% after the chipmaker's first-quarter results failed to impress investors. St. Louis Fed President Alberto Musalem is scheduled to speak later at 10:20 a.m. ET.
