U.S. stock futures climbed on Friday morning, August 8, 2025, as investors reacted to fresh political drama at the Federal Reserve and rising expectations for interest rate cuts this year.
The Dow Jones, S&P 500, and Nasdaq futures all moved higher, signaling a potentially upbeat start to the trading day.
The major catalyst is President Donald Trump’s latest move to reshape the Fed.
On Thursday, Trump announced he would nominate Stephen Miran, currently the Chairman of the Council of Economic Advisers, as the interim replacement for Fed Governor Adriana Kugler, who resigned unexpectedly last week.
Miran is widely viewed as a policy dove, meaning he’s more likely to support lower interest rates. That perception has fueled speculation that the Fed could take a softer stance on monetary policy, aligning with Trump’s long-standing calls for rate cuts.
The shake-up comes as reports suggest Fed Governor Christopher Waller is emerging as a frontrunner to replace Jerome Powell as Fed Chair once Powell’s term ends on May 15.
Trump has repeatedly criticized Powell for not cutting rates faster, and the White House’s aggressive search for new leadership has reignited debate over the central bank’s independence.
For markets, however, the possibility of a more dovish Fed is translating into optimism. According to the CME FedWatch Tool, traders are betting on the first rate cut of 2025 as early as next month, with at least two cuts expected before year-end.
Lower interest rates typically make borrowing cheaper, boost corporate profits, and lift stock valuations, all bullish signs for investors.
By 5:31 a.m. ET, things stood at:
- S&P 500 E-minis – +16 points (+0.25%)
- Nasdaq 100 E-minis – +72.25 points (+0.31%)
- Dow E-minis – +61 points (+0.14%).
The gains follow a mixed day on Wall Street Thursday, when the Nasdaq eked out a record close thanks to optimism that major tech companies could sidestep Trump’s new tariffs on chip imports by shifting production to the U.S.
The S&P 500 and Dow Jones, however, slipped, weighed down by a steep 14.1% plunge in Eli Lilly after disappointing results from a late-stage study of its experimental GLP-1 pill, which underperformed rival Novo Nordisk’s treatment.
Right now, Wall Street’s attention is locked on the Federal Reserve, not just on interest rates, but on who will be in charge of setting them.
If Stephen Miran’s appointment and the potential rise of Christopher Waller as Fed Chair lead to a more rate-cut-friendly Fed, stocks could have more room to rally in the second half of 2025. But political pressure on the central bank also adds a layer of uncertainty.
For investors, the message is clear: keep an eye on Fed developments, watch the CME FedWatch tool, and stay nimble as the market reacts to every twist in this unfolding story.
