Nasdaq 100 and S&P500: EchoStar Soars as US Indices Slip on Fed Shake-Up Today

Futures Slip as Trump Targets Fed Independence, Nvidia and Economic Data in Focus

Stock futures edged lower early Tuesday, extending the market’s weak start to the week, after President Donald Trump took the rare step of removing Federal Reserve Governor Lisa Cook. Dow futures fell 78 points, or 0.2%, while the S&P 500 and Nasdaq-100 also slipped 0.2% each. The move rattled markets already on edge over central bank policy, sending long-term Treasury yields higher and pushing the dollar lower.

Is the Fed’s Independence Now in Question?

Trump’s decision to oust Cook—an action likely to face legal hurdles—has reignited concerns about political influence over monetary policy. If Trump succeeds in flipping the board through pending nominations, he could effectively hold a majority. That possibility is creating some unease among traders who have been counting on the Fed to remain data-driven and autonomous.

Even so, short-term rate cut hopes remain intact following dovish tones from Powell at Jackson Hole. But further political meddling could raise doubts about the Fed’s long-term inflation-fighting credibility, something the market can’t afford to ignore.

Which Stocks Are Moving Pre-Market?

A few individual names stood out early. EchoStar surged 66% after AT&T said it would acquire $23 billion in spectrum licenses. Eli Lilly added 2% after positive late-stage data from its weight loss pill trial. AMD gained 2% as well, helped by a Truist upgrade that pointed to growing adoption among hyperscale customers.

International Brokerage Group rose 4% after being added to the S&P 500, replacing Walgreens. Meanwhile, retail names like Canada Goose, VF Corp, and Rocky Brands all caught a lift after Baird upgraded the group to “outperform.” On the downside, Constellation Brands slipped 2% following a downgrade by Bank of America, citing concerns about beer consumption trends.

What Are Traders Watching Next?

The spotlight now turns to Nvidia’s earnings report after the bell Wednesday, which could either stabilize or rattle the tech trade depending on the numbers.

Economic releases today include durable goods orders, consumer confidence, the Case-Shiller Home Price Index, and the Richmond Fed Manufacturing Index. Richmond Fed President Thomas Barkin is also on deck, and his comments could offer insight into how the central bank views the political noise.

How Are Markets Likely to React?

In the near term, the Cook removal may be brushed off unless it becomes part of a broader challenge to Fed leadership. Most of the trading focus is now shifting toward corporate earnings and incoming economic data. Traders are walking a fine line—still hopeful about rate cuts, but now contending with a political layer that’s hard to quantify.

The next couple of sessions could set the tone heading into September. Keep watch on how Nvidia’s results and today’s data shape investor sentiment.

More Information in our Economic Calendar.