U.S. stock futures hovered near flatline Thursday following a choppy prior session marked by sharp reactions to speculation about Federal Reserve Chair Jerome Powell’s job security. President Donald Trump later calmed nerves by denying any immediate intent to remove Powell, though he declined to fully rule it out. Meanwhile, upbeat data from the business sector and strong earnings from Taiwan Semiconductor Manufacturing Co. added support to markets.
Futures show little movement
By 03:30 ET, stock futures for the Dow Jones Industrial Average and the S&P 500 were largely unchanged, while Nasdaq 100 futures saw a slight uptick of 28 points, or 0.1%. The calm followed a rollercoaster day on Wall Street, where major indexes initially fell on rumors about Powell’s ouster before bouncing back once Trump issued his denial.
“For less than an hour yesterday, it looked as if Trump was about to remove […] Powell,” wrote analysts at ING in a note. “After yesterday’s scare, markets have probably built even more resistance to headlines on this topic.”
The release of producer price data showing flat growth for June also lent stability to investor sentiment, offering a reprieve from earlier concerns sparked by strong consumer inflation figures earlier in the week.
Trump addresses Powell speculation
Tensions between the White House and the Federal Reserve remain a key concern for investors. Trump has repeatedly voiced dissatisfaction with Powell, blaming him for not cutting interest rates more aggressively in the face of global economic risks and trade tensions.
Still, Trump stepped back from immediate action on Wednesday, saying it was “highly unlikely” that he would fire Powell over any wrongdoing tied to the Fed’s costly headquarters renovation project—referring to GOP criticism of the $2.5 billion upgrade, which Fed officials have defended.
In a separate interview, Trump remarked that he would “love” to see Powell step down voluntarily, though he acknowledged that the choice remains with Powell. The Fed Chair, who Trump appointed in 2017, has indicated he intends to serve out his term, ending in May 2026.
Fed’s Beige Book shows growth amid policy headwinds
The Federal Reserve’s latest Beige Book suggested the U.S. economy continued to grow in June and early July, although rising anxiety over Trump’s tariff threats has begun to temper optimism.
The report noted businesses were seeing some acceleration in activity but described their overall outlook as “neutral to slightly pessimistic.”
“Contacts in a wide range of industries expected cost pressures to remain elevated in the coming months, increasing the likelihood that consumer prices will start to rise more rapidly by late summer,” the report added, summarizing input from the Fed’s 12 regional banks.
While all districts reported some negative effects from tariffs—mainly through higher prices—some firms indicated gains from shifting production back to the U.S.
Earnings spotlight turns to Netflix
Corporate earnings remain a key focus this week, with Netflix (NASDAQ:NFLX) set to report after the closing bell. Analysts at Vital Knowledge said the company is expected to deliver “very healthy results as its dominance” in streaming “expands,” though they cautioned that expectations “may be too frothy.”
Before markets open, investors will also digest earnings from GE Aerospace (NYSE:GE), Pepsico (NASDAQ:PEP), Elevance Health (NYSE:ELV), and Cintas Corporation (NASDAQ:CTAS).
Vital Knowledge noted that an encouraging pattern of strong earnings and upbeat guidance has recently buoyed broader equity markets.
TSMC surges on record-breaking quarter
Taiwan Semiconductor Manufacturing Co (NYSE:TSM) gave global tech sentiment a boost after reporting record earnings for the second quarter, thanks to heavy demand for its AI-focused chip technologies.
CEO C.C. Wei voiced optimism that the AI-driven surge would continue in the near term, though he advised caution about the outlook for the final quarter of 2025, citing concerns tied to ongoing trade tensions and tariffs.
TSMC posted net income of T$398.27 billion ($13.52 billion), up 60.7% year-over-year and ahead of Reuters’ forecast of T$377.4 billion. Earnings per share came in at T$15.36.
Revenue surged 38.6% to T$933.79 billion, driven by strong demand for the company’s advanced 3nm and 5nm chips, which power high-performance AI systems. These gains offset weaker performance in the mobile device segment and headwinds from unfavorable currency movements.
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