U.S. equity futures showed modest gains on Tuesday as traders awaited key economic data and a Federal Reserve interest rate decision later this week. August retail sales are expected to offer clues about consumer resilience amid ongoing concerns over tariffs imposed by President Donald Trump. On the regulatory front, a federal appeals court blocked Trump’s effort to remove Fed Governor Lisa Cook, while Oracle is reportedly involved in facilitating a deal to allow TikTok to continue operations in the U.S.
Futures inch higher
By early Tuesday, Dow futures were relatively flat, S&P 500 futures ticked up 0.1%, and Nasdaq 100 contracts rose 0.2%. Investors were also encouraged by Monday’s rally, supported by hopes of a Fed rate cut. The central bank is widely expected to reduce borrowing costs by 25 basis points, with a small possibility of a half-point cut. Tesla shares climbed 3.6% after CEO Elon Musk acquired roughly $1 billion in stock, and Alphabet reached a market value above $3 trillion, adding further momentum.
Retail data under the microscope
Economists project that U.S. retail sales grew by 0.2% in August, slowing from 0.5% in July. Declining consumer sentiment, now at its lowest since May, and a softening labor market have raised concerns about households’ ability to absorb higher costs linked to tariffs. University of Michigan survey director Joanne Hsu noted that Americans’ current and expected personal finances both eased by approximately 8% this month, reflecting heightened economic uncertainty.
Trump’s bid to remove Fed Governor denied
A D.C. appeals court ruled Monday that President Trump cannot fire Fed Governor Lisa Cook, allowing her to remain on the central bank board for this week’s policy meeting. The ruling denies the Justice Department’s request to pause a prior decision blocking her removal. Trump is expected to escalate the matter to the Supreme Court. Additionally, Stephen Miran’s Senate confirmation to the Fed Board of Governors allows him to participate in the meeting.
TikTok and Oracle deal developments
CBS News reported that Oracle (NYSE:ORCL) may play a role in a consortium enabling TikTok to continue U.S. operations under a potential agreement between Washington and Beijing. The specifics of the arrangement are still emerging, and ByteDance’s involvement has not been confirmed.
Gold and oil movements
Gold hit new record highs near $3,700 per ounce, supported by a weaker U.S. dollar and Fed rate cut expectations. Spot gold gained 0.3% to $3,690.87 per ounce, while December futures rose 0.2% to $3,726.50.
Oil prices pulled back slightly after recent gains, as markets weighed the potential effects of the Fed’s upcoming decision and Ukraine’s strikes on Russian oil infrastructure.
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