US stock futures stalled on Tuesday after President Trump ordered the removal of Federal Reserve governor Lisa Cook and threatened to impose new digital tax-related tariffs.
Dow Jones Industrial Average futures (YM=F) edged down 0.1%, while those on the S&P 500 (ES=F) hovered just below the flat line. Contracts on the tech-heavy Nasdaq 100 (NQ=F) also traded flat, after stocks pulled back from a record-setting rally on Monday.
Investors are treading carefully after Trump took to social media to ramp up pressure in his Fed feud and in his trade offensive.
The president said late Monday that he had determined there was “sufficient cause” to oust Cook, after the top Fed official resisted persistent demands for her resignation over allegations of mortgage fraud. Cook responded by saying Trump didn’t have the authority to fire her and she wouldn’t step down.
Longer-dated US bond prices fell amid concerns that Trump’s moves against Fed independence and for interest-rate cuts could stoke inflation. The yields on 10-year (^TNX) and 30-year (^TYX) Treasurys rose to about 4.3% and 4.9%, respectively.
On the trade front, Trump vowed to impose fresh tariffs and export curbs on chips and technology from countries that “unfairly” placed taxes on US digital services, speaking in a Monday social media post.
Read more: The latest on Trump’s tariffs
The reprisal risks escalating trade tensions between the US and the European Union, as the major trading partners inch toward understanding on tariffs. Wall Street is already monitoring risks in Europe as political turmoil risks collapse for France’s government.
Meanwhile, Wall Street is bracing for Nvidia earnings, which land Wednesday after the bell. Expectations for its results are sky-high, with the company’s stock up almost 34% so far this year, even as restrictions on chip sales to China have possibly cost the company billions.
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