U.S. stock futures edged higher on Thursday, as investors monitored calmer bond markets and anticipated key U.S. economic releases later in the week. Meanwhile, the Trump administration has escalated its tariff battle, filing an appeal with the Supreme Court to preserve emergency powers allowing the president to impose broad import duties. In other news, the Federal Reserve’s latest report suggests economic activity has remained largely steady, though firms remain concerned about persistent inflation. Tech newcomer Figma also posted its first quarterly earnings report since its blockbuster IPO.
Futures tick upward
By 03:55 ET, S&P 500 futures added 8 points, or 0.1%, Nasdaq 100 futures rose 36 points, or 0.2%, and Dow futures were essentially flat. The rebound in bond markets followed comments from Federal Reserve officials, including Governor Christopher Waller, reinforcing bets that the Fed could cut rates at its upcoming September meeting.
An auction of long-term Japanese government bonds saw moderate demand, enough to prevent renewed stress, despite the 30-year yield recently hitting all-time highs. Bond prices move inversely to yields.
On Wednesday, the S&P 500 and Nasdaq Composite finished higher, buoyed by Alphabet shares after a court ruling allowed Google to retain control over its Chrome browser and Android OS while restricting certain exclusive contracts. The decision also preserved a lucrative payments deal with Apple, lifting the iPhone-maker’s stock.
Trump appeals tariff decision
The Trump administration has requested that the Supreme Court hear its case to maintain presidential trade tariffs, following a lower court ruling that deemed most levies illegal.
“Imposing elevated duties on a range of nations has become a central pillar of President Donald Trump’s economic policy agenda since his return to power in January,” the filing notes. Trump maintains the tariffs are justified under the 1977 International Emergency Economic Powers Act (IEEPA), aimed at safeguarding U.S. manufacturing jobs and addressing trade imbalances.
However, a federal appeals court determined last month that Trump had exceeded his authority under IEEPA. Solicitor General D. John Sauer said in a filing that the “stakes in this case could not be higher,” urging the Supreme Court to take the case by September 10 and hold arguments in November. The court’s new term begins in October.
Trump expressed confidence the Supreme Court would rule in the administration’s favor, warning that otherwise the U.S. economy could “suffer so greatly.” He added that recent trade agreements might need to be unwound if the case is lost.
Fed’s Beige Book shows minimal change
The Federal Reserve’s Beige Book, released Wednesday, indicated economic activity was mostly unchanged over recent weeks, even as businesses remained wary of inflation pressures.
“Most of the twelve Federal Reserve Districts reported little or no change in economic activity since the prior Beige Book period,” the Fed noted, based on anecdotes collected through August 25.
The report also highlighted that consumers were becoming more cautious, as “for many households, wages were failing to keep up with rising prices,” with “economic uncertainty and tariffs” flagged as negative factors.
In the labor market, eleven districts reported little net change in employment, though soft spots were noted. Analysts at Vital Knowledge said, “The Beige Book […] described an economy facing ongoing stagflationary forces, with cooling growth and softening labor momentum alongside continued inflation pressure.”
Figma shares drop after first earnings report
Shares in Figma (NYSE:FIG) fell over 15% in after-hours trading following its first quarterly report, which fell short of expectations for some tech and AI investors.
Following its July 31 IPO, Figma’s stock surged to a $50 billion valuation, opening the door for other high-profile tech listings. Shares later pulled back, with several analysts assigning “neutral” ratings due to high valuation and intense competition.
The design software company provides collaborative tools to clients including Airbnb (NASDAQ:ABNB) and Netflix (NASDAQ:NFLX), allowing enterprises to develop websites, apps, and other digital products.
Q2 revenue rose 41% to $249.6 million, slightly above the $248.8 million estimate, with adjusted EPS of $0.09 versus $0.08 expected. Full-year revenue is projected at $1.02–1.03 billion, above analysts’ $1.01 billion estimate.
Despite the slight beat, analysts noted that Figma’s elevated valuation may still disappoint some investors.
Gold eases after record highs
Gold prices dipped, as investors took profits following record peaks, while the dollar stabilized ahead of key labor data and anticipated rate cuts.
Spot gold dropped 0.5% to $3,540.12/oz, and December futures fell 1.0% to $3,598.20/oz by 03:49 ET, after a week of record highs driven by expectations of a Fed rate cut at its Sept. 16-17 meeting. Safe-haven demand was also supported by concerns over stretched government debt in major economies.
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