U.S. Stock Futures Advance on Tech Gains Amid Focus on Fed Leadership Transition
U.S. futures rose 0.2% as Apple boosted tech amid tariffs and Fed chair speculation.
Trump's tariffs take effect; Apple boosts Nasdaq 0.4%, Eli Lilly drops 14%, Airbnb falls 8%.
Rising jobless claims boost Fed rate cut bets; Trump considers Waller, Bessent, Hassett for Fed Chair.
U.S. Stock Futures Gain as Apple Boosts Tech Sector Amid Tariff Concerns
On Thursday evening, U.S. stock index futures climbed, supported by gains in technology stocks led by Apple, as investors looked beyond President Donald Trump’s newly imposed semiconductor tariffs. Market participants also focused on potential candidates for Federal Reserve Chair Jerome Powell’s replacement, with Bloomberg reporting that Governor Christopher Waller is Trump's leading contender.
Following a mixed trading day on Wall Street, futures in the S&P 500, Nasdaq 100, and Dow Jones all rose by 0.2% to 6,379.0, 23,550.0, and 44,151.0 points respectively as of 19:32 ET (23:32 GMT).
Although tech sectors showed resilience, other areas faced challenges, including notable losses from Eli Lilly and signs of a cooling labor market highlighted by higher weekly jobless claims.
Impact of Tariffs and Sectoral Performance
President Trump’s reciprocal tariffs took effect on Thursday, targeting numerous major trading partners and stirring concerns about economic repercussions. In addition, Trump announced a 100% duty on semiconductor imports, while exempting companies with domestic manufacturing, thus sparing most chip imports from heavy tariffs.
Apple Inc. (NASDAQ: AAPL) emerged as the primary force behind Wall Street's gains after announcing a commitment to invest $600 billion in the U.S. over the next four years. This optimism helped the NASDAQ Composite index close up 0.4% at 21,242.70 points. Conversely, the S&P 500 edged down 0.1% to 6,340.0 points, and the Dow Jones Industrial Average declined 0.5% to 43,968.70 points.
Losses in shares such as Eli Lilly (NYSE: LLY), which dropped 14% following disappointing weight-loss study results compared with Novo Nordisk (NYSE: NVO), and Airbnb (NASDAQ: ABNB), which fell 8% due to slower anticipated growth, weighed on markets.
Intel (NASDAQ: INTC) shares declined 3% after Trump called for CEO Lip-Bu Tan’s immediate resignation over alleged China ties.
Labor Data and Federal Reserve Outlook
Further indications of labor market softness came as weekly jobless claims rose, adding to expectations that the Federal Reserve may reduce interest rates in the upcoming September meeting. President Trump has been urging the Fed to lower rates to counteract an economic deceleration and is expected to accelerate his decision on Powell’s successor.
In addition to Governor Christopher Waller, reports mention Treasury Secretary Scott Bessent and White House economic advisor Kevin Hassett as potential candidates for the Fed Chair position.
Following weak nonfarm payroll data, betting markets are pricing in around a 90% probability of a 25 basis-point rate cut in September, according to the CME FedWatch tool.
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