US stock futures dip as Trump’s firing of Cook sparks Fed independence fears
Investing.com-- S&P 500 climbed Wednesday, as investors awaited further earnings from big tech and the latest Federal Reserve interest rate decision.
At 1:00 p.m. ET (17:00 GMT), the Dow Jones Industrial Average traded 11 points, or 0.02%, higher, the S&P 500 index gained 0.2%, and the NASDAQ Composite gained 0.4%.
Meta, Microsoft headline the earnings slate
This is set to be the busiest week of the earnings season. As it currently stands, 199 S&P 500 companies have reported their quarterly results, and nearly 82% have beaten earnings expectations, according to FactSet data.
Wednesday sees the release of the first batch of results from key members of the so-called "Magnificent Seven" group of mega-cap tech stocks.
Facebook-owner Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) will be in the spotlight Wednesday, followed by Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) on Thursday.
Microsoft’s and Meta’s earnings after the bell are slated to be accompanied by returns from other names, including chip designer Arm Holdings (NASDAQ:ARM) and trading platform Robinhood Markets (NASDAQ:HOOD).
Elsewhere, Starbucks (NASDAQ:SBUX) stock surged higher after the coffee chain reported net revenue for the third quarter that beat expectations, suggesting its turnaround plan was making progress.
Humana (NYSE:HUM) stock climbed strongly after the health insurer lifted its annual revenue estimate after its second quarter results topped expectations.
Etsy (NASDAQ:ETSY) stock gained after the online marketplace reported better-than-anticipated second-quarter revenue, citing benefits from more personalized marketing and emerging artificial intelligence technologies.
VF Corporation (NYSE:VFC) stock surged after the Vans parent beat first-quarter revenue estimates, helped by an uptick in demand for its apparel and footwear products.
Trade talk setbacks
Sentiment has taken a minor hit after a fresh round of trade negotiations in Sweden between the U.S. and China failed to result in a major breakthrough following two days of talks.
But both sides described their discussions, which were aiming to help soothe possibly damaging tensions by seeking an extension to their ongoing 90-day trade truce, as constructive.
Additionally, Trump announced on Wednesday that the United States will impose a 25% tariff plus penalties on India starting August 1, citing the country’s purchases of Russian military equipment and energy.
Trade talks have been a key focus of the Trump administration in recent days, most notably with the president notching a framework deal with the European Union on Sunday.
Still, pacts with a host of other countries have yet to be secured, and an August 1 deadline for Trump’s elevated "reciprocal" tariffs to come into effect is now mere days away.
Fed to conclude latest meeting
The Federal Reserve concludes its July policy meeting later in the session, and the U.S. central bank is widely expected to leave interest rates unchanged at a range of 4.25% to 4.5%.
Many Fed officials, including Chair Jerome Powell, have recently indicated that a more cautious approach to future rate actions is warranted, citing a desire to see how Trump’s aggressive tariff policies impact the wider economy.
This stance has drawn the ire of the president, who has called on the Fed to quickly ratchet down rates to help boost growth.
Data released earlier Wednesday showed that the U.S. economy grew by more than anticipated in the second quarter, rebounding from a contraction in the first three months of 2025.
The Commerce Department’s advance gross domestic product (GDP) report on Wednesday showed growth of 3.0% for the April to June period, above the 2.5% growth expected. GDP shrank by 0.5% in the first quarter.
U.S. private payrolls increased more than expected July, rising by 104,000 jobs last month after a revised 23,000 decline in June. These numbers will serve as a precursor to the all-important nonfarm payrolls reading due out on Friday.
Peter Nurse, Ayushman Ojha contributed to this article