U.S. stock futures traded cautiously on Tuesday as investors focused on the upcoming Federal Reserve interest rate announcement scheduled for Wednesday. Attention is also on August retail sales data, which could offer insight into consumer behavior amid concerns about President Donald Trump’s import tariffs. Meanwhile, a U.S. appeals court blocked Trump’s effort to remove Fed Governor Lisa Cook, and Oracle is reported to be involved in a potential deal allowing TikTok to continue operating in the United States.
Futures modestly higher
By early Tuesday morning, Dow futures were mostly flat, while S&P 500 contracts gained 0.1% and Nasdaq 100 futures rose 0.2%. The previous session saw Wall Street indexes close higher, buoyed by optimism that the Fed may cut interest rates.
Markets widely expect the central bank to reduce rates by at least 25 basis points, with a smaller chance of a half-point cut. The Federal Open Market Committee began its two-day meeting on Tuesday. Investor sentiment was further supported by Tesla shares climbing 3.6% after CEO Elon Musk purchased roughly $1 billion in stock, and Alphabet reaching a new market value record above $3 trillion.
Retail sales in focus
August retail sales data will shed light on U.S. consumer spending trends. Economists forecast a modest 0.2% increase for the month, down from July’s 0.5% growth. A softening labor market and declining consumer sentiment—dropping to the lowest level since May—have raised concerns about potential tariff-driven inflation eroding household purchasing power. Joanne Hsu of the University of Michigan highlighted that Americans’ current and expected personal finances both weakened by around 8% this month.
Trump barred from removing Fed Governor Cook
A federal appeals court ruled Monday that President Trump cannot fire Fed Governor Lisa Cook, allowing her to participate in this week’s highly anticipated policy meeting. The U.S. Court of Appeals for the D.C. Circuit rejected the Justice Department’s request to delay an earlier ruling that blocked Cook’s removal. Trump is expected to appeal to the Supreme Court.
In related news, economist Stephen Miran’s confirmation to the Fed Board of Governors by the Senate enables him to take part in this week’s meeting.
Oracle could play role in TikTok U.S. operations
CBS News reported that Oracle (NYSE:ORCL) is among a group of firms potentially helping TikTok continue operating in the U.S., pending a framework agreement between Washington and Beijing. Details of the arrangement are still emerging, and ByteDance’s role in the plan has not yet been clarified.
Gold hits new record; crude pauses
Gold climbed to a fresh all-time high near $3,700 per ounce, supported by a weaker dollar ahead of the Fed announcement. Spot gold rose 0.3% to $3,690.87 per ounce, while U.S. December gold futures gained 0.2% to $3,726.50 per ounce.
Meanwhile, oil prices edged slightly lower after recent gains, as traders paused to digest the potential impact of the Fed’s policy decision and ongoing Ukrainian strikes on Russian oil facilities.
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