US stock futures slip: Wall Street gains tempered; investors watch Fed policy
U.S. stock futures dipped slightly on Tuesday after record gains, reflecting investor caution over Federal Reserve policy and political tensions. Major indexes, including the S&P 500, Dow Jones, and Nasdaq, hit new highs on Monday. Tech stocks like Alphabet surged, while credit card companies declined following President Trump’s proposed interest rate caps.
Stocks dip
Futures for the S&P 500 fell 0.1%, Dow Jones Industrial Average futures declined 0.1%, and Nasdaq 100 futures dropped 0.16% on Tuesday. Investors showed caution after Monday’s strong market performance. The moves reflect concern that the Federal Reserve could face pressure from the government in setting interest rates. Gold prices stayed steady, while the US dollar showed some volatility.
Tensions between Trump and Powell
Investors are watching closely after tensions between President Trump and Federal Reserve Chair Jerome Powell intensified. The Department of Justice recently subpoenaed the Federal Reserve and threatened criminal charges related to Powell’s testimony on renovations at the Fed’s headquarters. At the same time, Trump has suggested the Fed should lower interest rates faster than planned. Lower rates can make borrowing cheaper and usually support higher stock prices.
Major indexes rise
Despite all of this, major US stock indexes rose to new records on Monday. The S&P 500 gained 10.99 points, or 0.2%, to close at 6,977.27. The Dow Jones Industrial Average rose 86.13 points, or 0.2%, to finish at 49,590.20. The Nasdaq composite added 62.56 points, or 0.3%, closing at 23,733.90. The Russell 2000, which tracks smaller companies, rose 11.47 points, or 0.4%, to 2,635.69.
Tech stocks
Tech stocks performed well, led by Alphabet, Google’s parent company, which gained 1% and crossed a $4 trillion market value. This followed a new partnership with Apple to improve Siri using Google’s Gemini AI technology. However, credit card companies fell after President Trump proposed a one-year cap of 10% on credit card interest rates. Synchrony Financial dropped 8.4%, Capital One fell 6.4%, and American Express lost 4.3%.