U.S. stock futures showed little movement early Wednesday as investors processed a flood of tariff updates and awaited the Federal Reserve’s June meeting minutes. President Donald Trump reaffirmed his firm stance on the new tariff deadline, while signaling plans to expand his trade restrictions with a proposed 50% tariff on imported copper. Meanwhile, White House economic advisor Kevin Hassett is emerging as a leading candidate to succeed Jerome Powell as Fed Chair.
Futures Quiet Ahead of Fed Minutes
As of 03:31 ET (07:31 GMT), Dow futures remained flat, S&P 500 futures dipped marginally by 3 points (0.1%), and Nasdaq 100 futures slipped 14 points (0.1%). Wall Street’s main indexes closed mixed Tuesday despite numerous trade-related announcements. Markets welcomed the White House’s decision to push back the tariff implementation deadline to August 1, a delay from the original date set for Wednesday.
“Investors appear to be taking President Trump’s latest tariff threats in stride, focusing on the extension of today’s deadline for reinstating reciprocal tariffs,” said Jonas Goltermann, Deputy Chief Markets Economist at Capital Economics.
Trump Confirms Tariff Deadline, Eyes Copper Duties
At a recent cabinet meeting, Trump emphasized that the August 1 tariff deadline is final, despite earlier comments describing it as “not 100% firm.” He reported positive progress in talks with the European Union and China but warned that the EU would soon receive its own tariff notice.
In a significant development, Trump proposed slapping a 50% tariff on copper imports, underscoring his trade policy’s sector-specific ambitions. Copper plays a vital role in vehicle manufacturing, military equipment, and power infrastructure.
The president also hinted at forthcoming tariffs on other sectors, including pharmaceuticals and semiconductors.
Treasury Secretary Scott Bessent highlighted that tariffs have generated $100 billion in revenue for the U.S. so far this year, with projections reaching $300 billion by year-end. The bulk of collections began in Q2 following Trump’s imposition of a 10% baseline duty and higher tariffs on steel, aluminum, and automobiles.
Analysts note that tariff revenues have become increasingly important for the administration to offset costs associated with recent tax cuts and spending packages.
Focus Turns to Fed Meeting Minutes
Investors are now closely monitoring the upcoming release of the Federal Open Market Committee’s June meeting minutes for clues on the future path of interest rates. Policymakers held rates steady at 4.25%-4.5%, adopting a cautious “wait-and-see” approach amid the evolving tariff landscape.
Chair Jerome Powell has reiterated the rationale for patience but acknowledged that, without tariff uncertainties, rate cuts may have already been initiated.
Market consensus anticipates two rate reductions before the end of 2025, potentially beginning in September, followed by another in December. However, uncertainty persists as Trump intensifies pressure on Powell, labeling him “terrible” and demanding his resignation to appoint a rate-cutting replacement.
Kevin Hassett Emerging as Top Fed Chair Candidate
The Wall Street Journal reported Tuesday that White House economic adviser Kevin Hassett is a frontrunner to replace Powell. Once considered a secondary choice behind former Fed governor Kevin Warsh, Hassett has reportedly met with Trump multiple times regarding the Fed role.
Speculation grows that Trump may accelerate the nomination process, possibly announcing a successor later this year. Powell has held the chair position since 2017.
Oil Prices Flat Amid Rising U.S. Inventories
Oil prices remained steady Wednesday following data revealing a sharp increase in U.S. crude inventories, raising concerns that tariffs might dampen demand.
At 03:30 ET, Brent crude futures inched up 0.1% to $70.19 per barrel, while West Texas Intermediate futures held steady at $68.36 per barrel.
Both contracts had climbed to two-week highs Tuesday on supply disruption fears after recent Houthi attacks targeted shipping lanes in the Red Sea.
The American Petroleum Institute reported an unexpected 7.1 million barrel increase in U.S. crude stocks for the week ending July 4, vastly surpassing the anticipated 2.8 million barrel drawdown.
Market participants now await official data from the Energy Information Administration later Wednesday, with Independence Day travel expected to boost fuel demand.
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