U.S. stock futures nudged upward on Thursday, with the S&P 500 hovering just below its all-time high. Market sentiment remains cautious as President Donald Trump reportedly considers replacing Federal Reserve Chair Jerome Powell later this year amid frustrations over the Fed’s cautious policy stance. Elsewhere, Chinese EV giant BYD slips on reports of production cutbacks, while Shell denies speculation that it’s eyeing a takeover of rival BP.
U.S. Futures Tick Higher
Stock futures in the U.S. pointed to a higher open on Thursday, as the S&P 500 stayed within reach of its previous record. As of 03:10 ET, Dow Jones futures were up 84 points (0.2%), S&P 500 futures rose 14 points (0.2%), and Nasdaq 100 futures gained 74 points (0.3%).
Wednesday’s session ended mixed, snapping a two-day rally. Investors digested signs of a potential ceasefire between Israel and Iran, alongside Fed Chair Powell’s testimony before Congress.
Markets are now focused on Friday’s release of the Personal Consumption Expenditures (PCE) price index—an inflation metric closely watched by the Fed. Powell reaffirmed a patient stance on interest rate decisions this week, emphasizing the need for more economic clarity amid new U.S. tariffs and persistent inflation.
“Markets seem to be trusting the ceasefire […], and the dollar is back to testing its lows. Expect U.S. data to play a bigger role from here,” analysts at ING noted, highlighting Powell’s subtly dovish tone during testimony.
Trump Considers Replacing Fed Chair Powell
President Trump is reportedly weighing the possibility of replacing Jerome Powell as Federal Reserve Chair—perhaps as early as this summer. His growing dissatisfaction with the Fed’s cautious approach to interest rate cuts has led him to narrow a list of potential successors down to three or four candidates.
According to The Wall Street Journal, Trump could make a formal announcement by September or October. He has long criticized Powell for not slashing rates aggressively, claiming the Fed’s restraint is costing the U.S. government “hundreds of billions” in interest payments. On Wednesday, Trump’s comments even questioned Powell’s mental capacity, adding fuel to speculation about a leadership change at the central bank.
BYD Shares Slide on Production Slowdown
Shares of BYD Co. (SZ:002594), China’s leading electric vehicle maker, fell over 2% following a Reuters report that the company has scaled back production and paused some expansion efforts.
Sources cited in the report said BYD has canceled night shifts and cut output by at least one-third at four of its Chinese factories. The company has also delayed installing new production lines, signaling a shift away from its previous aggressive growth push amid growing inventories and margin pressures.
Despite surpassing Tesla with a record 4.27 million EVs sold in 2023, BYD is now facing headwinds including rising competition, falling prices, and ballooning dealer stockpiles—even as it targets 5.5 million vehicle sales this year.
Shell Denies BP Takeover Rumors
Energy giant Shell has formally denied reports that it is considering a takeover of BP. In response to a Wall Street Journal article claiming early-stage talks were underway, Shell stated unequivocally that no such discussions have occurred and it has no intention to pursue a bid.
Under U.K. takeover rules, Shell’s public denial now prohibits it from making an offer for BP for the next six months.
“In response to recent media speculation, Shell wishes to clarify that it has not been actively considering making an offer for BP,” the company said in a statement. “No approach has been made, and no talks have taken place.”
The WSJ had earlier reported that BP was carefully evaluating an approach from Shell, though no formal negotiations were confirmed.
Oil Prices Edge Higher on Inventory Draw
Oil prices rose slightly, extending gains from the previous session, as a larger-than-expected draw in U.S. crude inventories pointed to sustained demand.
By 03:15 ET, Brent crude was up 0.2% at $66.54 a barrel, while West Texas Intermediate (WTI) gained 0.1% to reach $65.00.
Both benchmarks advanced nearly 1% on Wednesday after data from the Energy Information Administration showed U.S. crude stockpiles declined for a fifth straight week—falling by 5.8 million barrels. Gasoline inventories also dropped by 2.1 million barrels, with demand reaching its highest level since December 2021.