Trump hints at replacing Powell 13/06/2025

HOT stories for today

US market wrap:

• The S&P 500 closed higher on Thursday, buoyed by a rally in Oracle that lifted investor sentiment and propelled the broader technology sector. The benchmark index rose by 0.38%, while the Nasdaq Composite advanced 0.24%. The Dow Jones Industrial Average also edged up 0.24%. Oracle shares jumped 13% after the company posted stronger-than-expected results for its fiscal fourth quarter, surpassing estimates on both revenue and earnings, and signaled continued expansion in its cloud services. 
• Conversely, Boeing, a component of the Dow, dropped nearly 5% following the crash of an Air India Dreamliner 787 shortly after takeoff, carrying 242 passengers. Meanwhile, President Donald Trump's unilateral tariff threats appeared to temper the market’s upward momentum, as investors awaited further clarity on trade policy. In commodities, oil prices spiked 9% after Israeli airstrikes on Iran, marking the largest single-day gain in nearly five years.

Trump hints at replacing Powell

• President Trump says he’ll soon announce his choice for the next Federal Reserve chair, raising fears of political interference. Though Jerome Powell’s term runs until May 2026, Trump’s early move is seen by analysts as an attempt to push for lower interest rates—a long-standing demand of his. Markets could react positively in the short term if investors expect a more dovish Fed. Stocks might rise and Treasury yields could fall. But experts warn that appointing a “shadow chair” early could damage the Fed’s credibility, inflate risk premiums, and weaken U.S. assets. 
• Tom Essaye of Sevens Report Research noted that undermining the Fed’s independence risks harming foundational markets like the dollar and Treasuries. Michael Strain of AEI added that any nominee must show independence from Trump to maintain market trust. While early picks aren't unprecedented, naming a successor nearly a year ahead could create confusion and limit the Fed’s ability to guide policy. Brookings fellow Sarah Binder pointed out that presidents often want dovish Fed chairs, but don’t always get the results they expect.

Stocks on the move:

• Cardinal Health (CAH) – Shares of the healthcare services provider climbed 4.6% to reach a new record high. The company raised its full-year outlook, projecting adjusted earnings of $8.15 to $8.20 per share, up from its previous forecast of $8.05 to $8.15.
• Datadog (DDOG) – The cloud-based security and monitoring firm rose over 3% after Wolfe Research upgraded the stock to “outperform.” Analyst Alex Zukin cited increasing optimism about short-term growth prospects tied to artificial intelligence.
• GameStop (GME) – The video game retailer and meme stock plummeted 22.5% after revealing plans to issue $1.75 billion in convertible senior notes. The funds will be used for “general corporate purposes,” including potential investments.
• CureVac (CVAC) – Shares of the clinical-stage biotech company surged nearly 38% after Germany-based BioNTech announced it will acquire CureVac in an all-stock transaction worth approximately $1.25 billion.

                                       Watchlist: ADBE, RH, XOM, OXY, LMT, ORCL, BA, TSLA, NVDA



Today’s action

• Asia-Pacific markets declined on Friday after Israel carried out a military strike targeting Iran’s nuclear facilities, prompting Tehran to vow retaliation. Japan’s Nikkei 225 slid 1.12%, while Hong Kong’s Hang Seng Index retreated 0.72%.
• The geopolitical tension also rattled U.S. equity futures Thursday night. Dow Jones Industrial Average futures dropped 611 points, or nearly 1.4%. S&P 500 futures slipped around 1.6%, and Nasdaq 100 futures also declined 1.6%. The downturn followed Israeli Defense Minister Yoav Gallant’s declaration of a special state of emergency in response to the strike. On the economic front, investors are eyeing the preliminary June reading of the University of Michigan’s consumer sentiment index for further insight into consumer confidence.

Bitcoin

• Bitcoin dropped over 4% on Wednesday, sliding to an intraday low of $103,362, as reports of Israeli airstrikes on Tehran triggered a broad flight from risk. The attack, targeting Iran’s nuclear facilities, escalated geopolitical tensions and sent global markets reeling. The sell-off mirrored a wider risk-off move—U.S. stock futures sank up to 1.6%, Asia-Pacific markets tumbled, and oil prices surged nearly 10%, their largest daily gain in years.
• Safe-haven assets like gold and Treasury bonds rallied, while crypto saw over $1 billion in long positions liquidated. Meanwhile, Nasdaq-listed VivoPower (VVPR) deployed $100 million in XRP, launching a blockchain-based institutional treasury with Flare, signaling growing corporate interest in digital assets despite volatile conditions.
  Watchlist: Bitcoin: 100 000-112 000, Ethereum:1500-2800, Solana: 80-183

Forex

• The Japanese Yen (JPY) edged lower Friday, with USD/JPY hitting 143.75 as the BoJ is expected to hold rates steady at 0.5% next week. Still, geopolitical tensions and BoJ-Fed policy divergence are likely to limit downside for the safe-haven JPY.
• The Euro (EUR) also retreated, with EUR/USD falling from a 2.5-year high of 1.1631 to around 1.1530. The pullback ends a four-day rally, driven by rising demand for the U.S. Dollar after Israel's strike on Iran and renewed trade tariff threats from former President Trump.
  Watchlist: EUR/USD: 1.0700-1.1650, USD/JPY: 140-151

Basic Materials

• West Texas Intermediate (WTI) crude jumped 6.2% to $72.05 during early Friday trading in Asia, hitting its highest level since February. The rally comes in response to Israeli airstrikes on Iran, stoking fears of broader conflict in the Middle East. While geopolitical risks are lifting prices, uncertainty tied to Trump’s renewed tariff threats could act as a headwind for crude.
• Gold (XAU/USD) also extended its rally for a third straight session, reaching $3,444—its highest since April 22. The precious metal continues to benefit from rising global risk aversion and trade uncertainty. Expectations of potential Fed rate cuts are also supportive, though gains are tempered by a modest rebound in the U.S. Dollar.
  Watchlist: GOLD 2600-3500, US Oil: 55.60-72.50
  
   

Key Economic Events Today:

EST time
10:00 am: USD Consumer Sentiment
10:00 am: USD Inflation Expectations


Earnings

Enjoy your weekend!

The TEFS Analyst team wishes you a successful day!