US Stock Futures Rise on Micron Results and Fed Chair Replacement Reports

TLDR

Table of Contents

US stock futures rose Thursday as Micron Technology forecast higher quarterly revenue, boosting AI chip optimism
President Trump is reportedly considering naming a Fed Chair replacement for Jerome Powell as early as September-October 2025
Markets are pricing in 63 basis points of rate cuts by end of 2025, with 70% chance of September cut
Nvidia hit fresh all-time highs while S&P 500 and Nasdaq trade near record peaks
Personal Consumption Expenditures inflation report due Friday will be closely watched for tariff impact signs

US stock futures climbed Thursday morning as investors processed strong earnings from memory chip maker Micron Technology and reports that President Donald Trump may announce a Federal Reserve Chair replacement within months.

Dow Jones futures gained 0.3% while S&P 500 futures added 0.4%. Nasdaq 100 contracts rose 0.5% as technology stocks continued their upward momentum.

Micron Technology shares jumped 2.7% in premarket trading after the company forecast quarterly revenue above analyst estimates. The memory chip maker cited growing demand for its products used in artificial intelligence data centers.

The strong Micron results lifted other semiconductor stocks. Nvidia advanced 1.2% after hitting a fresh all-time high on Wednesday, continuing its rally driven by AI demand.

The Wall Street Journal reported that Trump is considering announcing his pick to replace Fed Chair Jerome Powell as early as September or October 2025. Powell’s current term ends in May 2026.

Fed Leadership Uncertainty

Trump’s reported plans stem from frustration with Powell’s cautious approach to interest rate cuts. The Fed Chair has maintained a “wait and see” stance on lowering borrowing costs despite pressure for more aggressive action.

Markets interpreted the potential early announcement as a signal that rate cuts may come sooner than expected. Traders are currently pricing in about 63 basis points of rate cuts by the end of 2025.

JUST IN 🚨: The odds of an interest rate cut by the September FOMC now stand at 88% 🥳🫂 pic.twitter.com/DHuUOWSCE4
— Barchart (@Barchart) June 25, 2025

The CME Group’s FedWatch tool shows a 70% probability of a 25 basis point rate cut in September. This reflects growing market confidence that the Fed will begin easing monetary policy.

An early replacement announcement could undermine Powell’s influence for the remainder of his term. Market focus would likely shift to the incoming chair’s policy preferences and approach.

Economic Data Focus

Several Fed officials are scheduled to speak Thursday including Chicago President Austan Goolsbee and Richmond President Thomas Barkin. Cleveland President Beth Hammack, Board Governor Michael Barr, and Minneapolis President Neel Kashkari will also address markets.

The Commerce Department will release final first-quarter GDP data at 10:00 AM ET. Durable goods data for May and initial jobless claims figures are due at 8:30 AM ET.

The dollar fell to its lowest level since April 2022 as concerns about tariff impacts and potential default weighed on the currency. Treasury yields declined with the benchmark 10-year trading around 4.28%.

Friday’s Personal Consumption Expenditures report will be closely scrutinized by investors. The PCE is the Fed’s preferred inflation gauge and will provide insight into whether Trump’s tariffs are pushing prices higher.

The S&P 500 and Nasdaq closed Wednesday just under 1% below their record peaks. Both indexes have been supported by easing Middle East tensions and continued optimism around artificial intelligence technology.

Nike shares edged up 0.8% ahead of quarterly results scheduled before the market open Thursday.

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