S&P and Nasdaq futures remain slightly elevated, as market participants keenly anticipate the imminent Federal Reserve interest rate announcement scheduled for Wednesday. A metric of U.S. retail sales may offer deeper insights into the condition of American consumers, who are increasingly concerned about the effects of President Donald Trump’s extensive import tariffs on their finances. In the interim, an appeals court has dismissed Trump’s attempt to remove Fed Governor Lisa Cook, while Oracle is said to be involved in a transaction that will enable the widely-used short-form video application TikTok to maintain its operations in the United States.

Dow futures indicated a predominantly positive outlook on Tuesday, as market participants prepared for the forthcoming U.S. retail sales data and anticipated a significant Federal Reserve interest rate decision later in the week. At 03:13, the Dow futures contract exhibited minimal variation, whereas S&P futures increased by 6 points, representing a 0.1% rise, and Nasdaq 100 futures gained 40 points, equivalent to a 0.2% increase. The primary indices concluded the trading session on Monday with gains, largely driven by optimism surrounding a potential reduction in the Federal Reserve’s interest rates. Market participants are nearly unanimous in their expectation that the U.S. central bank will reduce borrowing costs by a minimum of 25 basis points at the conclusion of its upcoming policy meeting on Wednesday. Additionally, there exists a remote possibility of a more substantial reduction of 50 basis points from the existing target range of 4.25% to 4.5%. The Federal Open Market Committee, responsible for setting interest rates, will commence its two-day meeting today. Stocks were buoyed as well by electric carmaker Tesla, whose shares rallied by 3.6% on a regulatory filing showing that CEO Elon Musk had bought around $1 billion worth of the stock. Google-owner Alphabet also notched a fresh all-time peak that brought its market value above $3 trillion.

The economic calendar will prominently feature U.S. retail sales data for August, anticipated to indicate a deceleration in growth for this metric. Analysts project that, on a month-on-month basis, retail sales increased by 0.2% last month, in contrast to a rise of 0.5% in July. Concerns persist that signs of a softening U.S. labor market in recent months may impact spending activity. Additionally, a measure of consumer sentiment from the University of Michigan for September declined to its lowest level since May, as households expressed anxiety over the potential for a tariff-induced increase in inflation that could erode their purchasing power. In conjunction with “multiple vulnerabilities” in the economy, “consumers perceive risks to their pocketbooks as well,” with current and expected personal finances both easing about 8% this month, stated Joanne Hsu, the director of the Surveys of Consumers at the University of Michigan.

An appeals court ruled on Monday that President Trump lacks the authority to dismiss Fed Governor Lisa Cook, thereby permitting her to continue serving on the central bank’s board during the upcoming policy meeting that is attracting significant attention. The U.S. Court of Appeals for the District of Columbia Circuit, in a 2-1 ruling, rejected the Department of Justice’s request to suspend an earlier decision that prevented Trump from dismissing Cook.
Last week, U.S. District Judge Jia Cobb determined that the allegations of mortgage fraud made by Trump against Cook, which were denied by the Fed governor, did not constitute adequate grounds for her dismissal. Trump is anticipated to seek an appeal in the Supreme Court regarding the case. In a distinct development, the Senate approved economist Stephen Miran’s nomination to the Fed Board of Governors in a closely contested vote on Monday evening. The confirmation enables Miran to engage in the Federal Reserve’s meeting scheduled for this week.

Oracle is positioned to play a significant role in the U.S. deal concerning TikTok. Oracle is among a consortium of firms that could enable TikTok to continue operating in the U.S. if a framework deal between Washington and China is reached. The specifics of the arrangement remain ambiguous; however, it is expected to encompass several firms, referencing individuals familiar with the discussions. The extent of ByteDance’s involvement, the parent company of TikTok, remains unclear at this time. The report follows the announcement by U.S. officials regarding their agreement on the commercial terms of the deal with Beijing, subsequent to high-level discussions held in Madrid between the two nations. Earlier this week, Trump suggested that a deal was forthcoming, stating on social media that an agreement had been “reached on a ‘certain’ company that young people in our country very much want to save.”

Gold reached a historic high, approaching $3,700 per ounce, supported by a depreciating U.S. dollar ahead of the Federal Reserve’s decision. By 03:34, spot gold experienced an increase of 0.3%, reaching a price of $3,690.87 per ounce. U.S. gold futures for December increased by 0.2% to $3,726.50 per ounce. Bullion surged by 1% in the prior session, exceeding the record levels achieved last week. In other developments, crude prices experienced a slight decline, taking a moment to consolidate after recent increases, as market participants evaluated the forthcoming Federal Reserve announcement and the impact of Ukrainian assaults on Russian oil infrastructure.