Tonight’s Highlights | U.S. Stock Futures Collectively Decline, Trump Storm Hits Fed Again
On Tuesday, U.S. stock futures for the three major indices were collectively lower in pre-market trading. As of press time, Dow Jones futures fell 0.19%, S&P 500 futures dropped 0.09%, and Nasdaq 100 futures declined 0.14%.
EchoStar surged nearly 70% after AT&T agreed to acquire spectrum licenses from EchoStar for approximately $23 billion in cash; Eli Lilly rose over 2% following successful Phase 3 clinical trial results for its oral GLP-1RA orforglipron in treating obesity with type 2 diabetes.
The previous trading day saw all three major U.S. indices close lower, dampening the market’s upward momentum from Federal Reserve Chair Jerome Powell’s speech last Friday. After hours, Trump announced the dismissal of Fed Governor Lisa Cook, introducing new risks to financial markets.
Trump publicly shared a letter to Cook on social media, announcing her immediate termination. He accused her of “fraudulent and potentially criminal behavior” in financial matters, claiming it undermined her credibility as a regulator.
Trump had warned last Friday that he would fire Cook if she did not resign, even posting a chart of the Fed’s seven governors with a large “X” over Cook’s position.
Nick Timiraos, dubbed the “new Fed whisperer,” noted that Trump has already appointed two members to the Fed’s seven-member board. With two more nominations, he could secure a majority, potentially reshaping the Fed’s structure fundamentally.
Analysts suggest Trump’s firing of Cook could spark a lengthy legal battle, potentially reaching the Supreme Court. If the ruling damages the Fed’s independence, it could erode market confidence in its ability to control inflation, disrupting financial markets.
However, compared to this long-term Fed factor, Nvidia’s quarterly earnings, due after Wednesday’s close (early Thursday Beijing time), may have a greater short-term impact on stocks—potentially boosting recently soft large-cap tech stocks or accelerating their decline.
Keith Lerner, co-chief investment officer at Truist Wealth, said, “I still believe the dominant theme of this bull market in the long run is artificial intelligence. Expectations for this technology are high ahead of Nvidia’s earnings release.”
“If we see Nvidia encounter some minor issues, we’ll use that as an opportunity to continue investing in tech stocks, as they remain the strongest driver of this market,” Lerner added. “So far, we haven’t seen any change in this theme.”
European stock markets trading currently are mostly lower, with the German DAX down 0.36%, the UK FTSE 100 down 0.35%, and the French CAC 40 down 1.5%.
The previous day, French Prime Minister Michel Barnier held a press conference outlining the government’s recent policy priorities and announced a confidence vote on September 8. He aims to force political parties to take a stand on the €43.8 billion spending cuts bill.
Barnier noted that President Emmanuel Macron has agreed to convene parliament early to present the plan and hold the vote. If it fails, the current government would be forced to resign, potentially triggering new political instability in France.
Company News
Trump: U.S. Government Taking Intel Shares Not Shamefu
On August 25 local time, U.S. President Trump, responding to reporters at the White House, said that Intel’s decision to give the U.S. government about 10% of its shares “is good for the company,” and he “instantly made hundreds of billions for America.” He added that he would “do it again” if another opportunity arises, dismissing critics who call it “shameful” as “just business.”
Trump Suggests Revoking NBC and ABC Licenses
U.S. President Trump recently urged the Federal Communications Commission (FCC) to revoke the licenses of Disney-owned ABC and Comcast-owned NBC News. In a late-night social media post on the 24th, Trump claimed these outlets are biased, with most reports about him being “negative news.”
He said, “Many believe their licenses should be revoked, and I fully support that view because they are biased and dishonest.” Reuters noted Disney declined to comment, while Comcast did not immediately respond.
Norway Sovereign Wealth Fund Divests from U.S. and Israeli Firms Amid Israel-Palestine Tensions
On the 25th, Norway’s sovereign wealth fund announced it would divest from one U.S. company and five Israeli financial institutions for ethical reasons. The firms include U.S. construction and mining equipment maker Caterpillar and Israel’s two largest banks, Bank Hapoalim and Bank Leumi.
Managed by Norway’s central bank, the fund, with $2 trillion in assets, is the world’s largest sovereign wealth fund. It stated the divestment was due to these U.S. and Israeli firms “contributing to serious violations of individual rights in wars and conflicts,” posing “unacceptable risks.”
Eli Lilly’s Oral GLP-1 Drug Shows Positive Results
Eli Lilly’s oral GLP-1 drug orforglipron achieved positive results in Phase 3 trials, paving the way for a global regulatory filing for obesity treatment this year.
AbbVie to Acquire Gilgamesh’s MDD Candidate Bretisilocin
AbbVie announced a definitive agreement with Gilgamesh Pharmaceuticals to acquire bretisilocin, a 5-HT2A receptor agonist and 5-HT releaser in development for moderate to severe depression (MDD).
South Korea Orders Over 100 Boeing Planes
Korean Air announced a $50 billion deal with Boeing to purchase 103 next-generation aircraft, including spare engines, with maintenance services over the next 20 years.
Ke Holdings: Q2 Net Revenue Up 11.3% Year-on-Year
Ke Holdings reported Q2 revenue of ¥26 billion, up 11.3% year-on-year, but non-GAAP net profit fell 32.4% to ¥1.82 billion.