Stock market today: Dow, S&P 500, Nasdaq futures fall as Trump ousts Fed governor

US stock futures declined after President Trump's attempt to oust Fed Governor Lisa Cook, sparking concerns over central bank independence. Investors are also bracing for Nvidia's highly anticipated earnings on Wednesday, which will serve as a key litmus test for Big Tech's AI investments, ahead of Friday's release of the Fed's preferred PCE inflation data.

Analysis

US equity futures are trading lower, with the Dow, S&P 500, and Nasdaq 100 all down approximately 0.2%, following President Trump's announcement of his intent to fire Federal Reserve Governor Lisa Cook. This development has injected significant uncertainty into the market, raising investor concerns about the future operational independence of the central bank. This political event overshadows a mixed trade policy outcome where a 15% tariff on South Korean imports was maintained, although a positive firm-specific catalyst emerged with Korean Air announcing a purchase of 103 Boeing (BA) aircraft. The market's focus is now bifurcated between immediate political risks and upcoming fundamental data. All eyes are on Nvidia's (NVDA) earnings on Wednesday, which are viewed as a critical litmus test for the sustainability of Big Tech's AI-driven rally, especially given the stock's 34% year-to-date appreciation and the headwind from restrictions on chip sales to China. Concurrently, investors are anticipating Friday's release of the Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred measure of inflation, which will be a key input for future monetary policy expectations.

Key Decisions for Investors

• Investors should prepare for heightened market volatility driven by political headlines concerning Federal Reserve independence, which now represents a primary source of market risk.
• Ahead of Nvidia's earnings, positions in the company and the broader tech sector should be reviewed, as the report's outcome relative to sky-high expectations will be a significant catalyst, with commentary on China sales being a key risk factor.
• The confirmed 103-plane order for Boeing presents a positive, firm-specific data point that could support its stock performance relative to a market facing broad macroeconomic and political uncertainty.
• Monitor Friday's PCE inflation data closely, as the reading will be a critical input for market expectations regarding future Fed policy, especially in a context of questioned central bank autonomy.