U.S. stock futures rebounded modestly early Tuesday, following a sharp selloff on Monday triggered by renewed criticism of Federal Reserve Chair Jerome Powell from President Donald Trump, who intensified his public campaign for immediate interest rate cuts.
- Dow Jones Industrial Average futures (YM=F): +0.31%
- S&P 500 futures (ES=F): +0.37%
- Nasdaq Composite futures (NQ=F): +0.33%
The recovery comes as investors assess whether Trump’s escalating rhetoric will sway Fed policy or exacerbate existing economic and policy uncertainties.
🗣️ Trump vs. Powell: Tensions Hit New High
In a string of late-day social media posts Monday, Trump accused Powell of threatening U.S. economic strength, calling him “Mr. Too Late” and “a major loser”. He warned that the economy would “slow to a crawl” unless interest rates are cut immediately.
This isn’t the first time Trump has pressured the Fed, but his recent language has been particularly aggressive. Last week, Powell reiterated the central bank’s cautious stance on rate cuts, citing inflation uncertainty and growing concerns over Trump’s tariff policy as risk factors.
“Powell’s termination can’t come soon enough,” Trump said on Truth Social, intensifying speculation over central bank independence and future leadership changes.
💡 Market Implications
Monday’s sharp drop in equities was driven by a cocktail of:
- Policy uncertainty
- Concerns over central bank credibility
- Weak expectations for corporate earnings, especially in the tech and consumer discretionary sectors
Investors are now bracing for higher volatility as political pressure on the Fed intersects with upcoming earnings from major firms and soft economic indicators. Bond markets remained steady Tuesday morning, while gold held gains from Monday’s risk-off sentiment.
🚗 Tesla Earnings in the Spotlight
The next major data point for traders is Tesla’s Q1 earnings report, scheduled for release after Tuesday’s market close. Tesla shares fell nearly 6% on Monday, extending their year-to-date decline to 44%.
The company has faced:
- Slumping EV sales
- Declining brand sentiment
- Internal leadership scrutiny amid Elon Musk’s White House advisory role, which has raised concerns about political exposure
Analysts are watching closely for updates on Tesla’s China sales, AI strategy, and production guidance for the second half of the year.
📉 Outlook: Political Overhang Meets Economic Caution
While stock futures point to a modest recovery, investor confidence remains fragile. Trump’s combative stance toward the Fed, combined with ongoing trade tensions and a fragile earnings season, could inject more headline-driven swingsinto markets over the coming weeks.
If Powell signals resistance to political pressure in upcoming speeches—or if Tesla delivers a major earnings miss—volatility could resurface quickly.
