U.S. stock futures slid Tuesday morning. The move followed President Trump’s announcement to fire a Fed governor. This action raises concerns about the central bank’s independence. Dow, S&P 500, and Nasdaq futures all pointed to a lower open. The U.S. dollar weakened on the news while gold prices rose. Investors are moving toward safer assets amid the uncertainty.
Trump’s Move Against Fed Governor Sparks Concern
President Trump said he is removing Federal Reserve Governor Lisa Cook. He posted the news late Monday on his social media platform. By law, a president may only remove a governor “for cause.” This unprecedented action could face legal challenges. It could also give the president more influence over interest rate policy. This political pressure on the Fed has unsettled Wall Street.
Global Markets Trade Lower
Uncertainty also spread to international markets. European stocks fell in morning trade. France’s CAC 40 index led the losses amid political concerns. In Asia, markets mostly closed lower. Hong Kong’s Hang Seng index dropped over 1%. Investors there reacted to Trump’s tariff threats against China.
Investors Await Nvidia Earnings and Economic Data
Wall Street is bracing for Nvidia’s earnings report on Wednesday. The results will be a major test for the AI and tech sectors. Many see the long-term AI trend as positive for the market. Investors will also watch several economic reports today. Releases include durable goods orders and the latest consumer confidence data. The Case-Shiller Home Price Index is also due.
Wall Street Coming Off a Losing Day
The negative pre-market sentiment follows a down day for stocks. On Monday, the major averages all closed in the red. The Dow Jones Industrial Average slid 349 points. Investors took profits after a strong rally at the end of last week.