U.S. Stock Futures Slip as Investors Eye Fed Minutes, Target Earnings, and Musk News

U.S. stock futures edged lower on Wednesday, with investors awaiting the release of the Federal Reserve’s meeting minutes, key retail earnings, and reports that Elon Musk is shelving political ambitions.

1. Fed Minutes Could Expose Divisions

The minutes of the Fed’s last policy meeting are due Wednesday and could reveal divisions among policymakers. While the central bank has kept rates steady in the 4.25%–4.50% range this year, worries over Trump’s tariffs and inflation risks have kept Chair Jerome Powell cautious.

President Donald Trump has heavily criticized the Fed’s stance, while some officials have called for rate cuts. At the last meeting, Christopher Waller and Michelle Bowman dissented, marking the first double dissent since 1993.

Markets currently expect a 25-basis-point cut in September, with another possible before year-end. Investors will also focus on Powell’s Jackson Hole speech on Friday for more guidance.

2. U.S. Futures Fall Ahead of Fed Minutes

At 03:00 ET (07:00 GMT),

• S&P 500 futures fell 12 points (0.2%)
• Nasdaq 100 futures dropped 75 points (0.3%)
• Dow futures slipped 85 points (0.2%)

On Tuesday, the S&P 500 fell 0.6% and the Nasdaq dropped 1.5%, while the Dow closed slightly higher.

Investors remain cautious ahead of Fed minutes and a wave of retail earnings, including Target, Lowe’s, and TJX. According to Jefferies, U.S. companies posted their strongest earnings beats in over three years last quarter.

3. U.S. Considers Semiconductor Equity Stakes

According to Reuters, the U.S. government is considering taking equity stakes in semiconductor firms receiving CHIPS Act subsidies. Talks are reportedly underway with Intel, Micron, TSMC, and Samsung, which have already received billions in grants.

The White House confirmed discussions with Intel about a potential 10% government stake. Such a move would mark a historic shift in U.S. industrial policy, giving Washington direct ownership in firms critical for national security.

4. Target’s Results in Focus

Target (NYSE:TGT) headlines retail earnings Wednesday. The company is expected to report EPS of $2.03 and revenue of $24.93 billion for Q2, according to LSEG.

The retailer has struggled with stagnant sales for four years, while analysts warn of tariff-related costs and competition from Walmart and Amazon. Target imports around 50% of its goods, compared with Walmart’s 33%.

Home Depot posted muted results Tuesday but kept forecasts intact. Earnings from Lowe’s and TJX are also due before the bell.

5. Musk Shelves Political Ambitions

The Wall Street Journal reported that Tesla CEO Elon Musk is quietly shelving plans to start a new political party, the “America Party.”

Musk had clashed with President Donald Trump earlier this year over fiscal policy but now appears focused on his companies. The decision is likely to ease concerns among Tesla shareholders, who feared Musk was becoming distracted.