U.S stock futures fall; Cook’s dismissal raises doubts over Fed independence

U.S. stock index futures slipped on Tuesday following President Donald Trump’s abrupt dismissal of Federal Reserve Governor Lisa Cook, fueling concerns over the central bank’s independence.

At 05:55 ET (09:55 GMT), Dow Jones Futures declined 70 points, or 0.2%, S&P 500 Futures lost 6 points, or 0.1%, and Nasdaq 100 Futures eased 19 points, or 0.1%.

Major indices closed weaker on Monday, beginning the week on a downbeat note after

Friday’s sharp rally. The Dow Jones Industrial Average shed 0.8%, the S&P 500 fell 0.4%, and the Nasdaq Composite slipped 0.2%.

Fed independence fears weigh

Sentiment soured after Trump posted a letter on social media announcing Cook’s immediate removal.

He claimed the decision was linked to allegations of mortgage fraud, citing “sufficient cause” for dismissal following accusations raised earlier this month by Federal Housing Finance Agency Director William Pulte.

Cook rejected the allegations and insisted she would not be forced out.

Trump’s move marks another attempt to exert influence over the Fed, where Cook served on the seven-member rate-setting board. Analysts warn that such political interference risks undermining U.S. economic credibility, as the Fed has long operated independently of government control.

Earlier this year, Trump also sought to remove Fed Chair Jerome Powell, who resisted pressure to deliver immediate rate cuts.

Durable goods data ahead

Expectations for a September rate cut grew late last week after Powell’s speech at Jackson Hole.

Markets now await durable goods orders, consumer confidence data, the Case-Shiller Home Price Index, and the Richmond Fed Manufacturing Index due later Tuesday. Richmond Fed President Thomas Barkin is also scheduled to speak.

On Thursday, investors will receive the second estimate of Q2 GDP alongside weekly jobless claims. HSBC economists anticipate growth to be revised up to 3.2% from the initial 3.0% estimate, while durable goods orders are forecast to contract and consumer sentiment to remain weak.

Nvidia earnings in focus

Caution also prevailed ahead of Nvidia’s (NVDA) earnings release on Wednesday. The AI leader is seen as a critical gauge for technology and market sentiment.

The report follows last week’s selloff in tech stocks amid skepticism over the sustainability of AI-driven gains.

According to LSEG IBES, S&P 500 earnings are tracking a 12.9% annual increase for Q2, well above the 5.8% growth projected in early July. Nvidia is expected to post a 48% jump in per-share earnings on revenue of $45.9 billion.

Crude eases, gold firms

Oil prices slipped, giving back part of Monday’s strong rally as markets monitored the Russia-Ukraine conflict for potential supply disruptions.

At 05:55 ET, Brent crude dropped 1.5% to $67.22 a barrel, while U.S. West Texas Intermediate fell 1.6% to $63.74. Both benchmarks surged nearly 2% in the prior session after Ukrainian strikes on Russian energy infrastructure raised the risk of tighter sanctions.
Gold prices extended gains as safe-haven demand strengthened amid concerns over Fed independence following Cook’s removal.

Spot gold rose 0.2% to $3,373.14 an ounce after reaching two-week highs, while October futures climbed 0.1% to $3,419.35.