U.S. stock futures showed modest gains on Thursday as investors monitored stabilizing bond markets and prepared for key economic data due later in the week. Meanwhile, the Trump administration has filed an appeal with the Supreme Court to defend emergency powers that allow the president to impose a wide range of import tariffs. Elsewhere, the Federal Reserve’s latest report indicates minimal change in economic activity in recent weeks, though businesses remain concerned about persistent inflation. Tech newcomer Figma also released its first quarterly earnings report since its high-profile IPO earlier this year.
Futures see slight uptick
By 03:55 ET, S&P 500 futures added 8 points, or 0.1%, Nasdaq 100 futures gained 36 points, or 0.2%, and Dow futures remained largely flat. Global bond markets had stabilized after a week of heavy selling, aided by remarks from Fed officials, including Governor Christopher Waller, which reinforced expectations of potential rate cuts at the Fed’s upcoming September meeting.
An auction of long-term Japanese government bonds drew lukewarm demand but was sufficient to prevent further stress, despite the 30-year yield recently hitting record levels. Bond prices move inversely to yields.
On Wednesday, the S&P 500 and Nasdaq Composite ended higher, lifted by Alphabet shares after a court ruling allowed Google to retain control of its Chrome browser and Android OS, while barring some exclusive contracts. The decision also preserved a lucrative Google-Apple payments deal, sending Apple shares higher.
Trump appeals tariff ruling
The Trump administration has asked the Supreme Court to hear its case to preserve presidential trade tariffs, hoping to overturn a lower court ruling that deemed most levies illegal.
Imposing higher duties on multiple nations has been a key part of President Donald Trump’s economic strategy since his return to office. He has argued the measures are legal under the 1977 International Emergency Economic Powers Act (IEEPA) and are intended to bring manufacturing jobs back to the U.S. and correct perceived trade imbalances.
However, a federal appeals court ruled last month that Trump exceeded his authority under IEEPA. Solicitor General D. John Sauer wrote that the “stakes in this case could not be higher” and urged the Supreme Court to hear the case by September 10 and hold arguments in November. The court’s new term begins in October.
Trump expressed confidence the Supreme Court would side with his administration, warning that a contrary decision could make the U.S. economy “suffer so greatly.” He added that recent trade agreements might have to be unwound if the case is lost.
Fed’s Beige Book shows little change
The Federal Reserve’s Beige Book, released Wednesday, indicated the economy was largely steady over recent weeks, although businesses remain cautious about inflation pressures.
“Most of the twelve Federal Reserve Districts reported little or no change in economic activity since the prior Beige Book period,” the report noted, based on anecdotal data collected through August 25.
Many districts observed consumers becoming more cautious, as “for many households, wages were failing to keep up with rising prices,” highlighting “economic uncertainty and tariffs as negative factors.”
On employment, eleven districts reported little net change, though some signs suggested softer job growth, with employers hesitant to hire.
“The Beige Book […] described an economy facing ongoing stagflationary forces, with cooling growth and softening labor momentum alongside continued inflation pressure,” analysts at Vital Knowledge wrote.
Figma shares fall after earnings
Figma (NYSE:FIG) shares dropped over 15% in extended trading after its first quarterly earnings report since its IPO disappointed some tech and AI investors.
Following its July 31 IPO, Figma’s stock surged to a roughly $50 billion valuation, potentially paving the way for other high-profile tech listings. Shares have since pulled back, partly due to several Wall Street analysts issuing “neutral” ratings in August, citing concerns over valuation and competition.
Figma provides collaborative design software to clients such as Airbnb (NASDAQ:ABNB) and Netflix (NASDAQ:NFLX), enabling enterprises to build websites, apps, and digital products.
Second-quarter revenue rose 41% to $249.6 million, versus $248.8 million estimates, with adjusted EPS of $0.09 beating the forecast of $0.08. Full-year revenue is projected between $1.02 billion and $1.03 billion, slightly above analysts’ $1.01 billion estimate.
Despite the slight beat, analysts noted that Figma’s high valuation could still disappoint some investors.
Gold eases from record levels
Gold fell, as some investors took profits after the metal reached record highs, while the dollar steadied ahead of key labor and interest rate indicators.
Spot gold declined 0.5% to $3,540.12/oz, and December gold futures fell 1.0% to $3,598.20/oz by 03:49 ET, following a week of record peaks driven by expectations that the Fed would cut rates at its Sept. 16-17 meeting. Safe-haven demand was also supported by concerns over high government debt levels in major economies.
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