U.S. stock index futures extended their losses in early Friday trading as investors grew more cautious after President Donald Trump said he will announce his nominee for the next Federal Reserve chair later in the day.
Sentiment was also pressured by weakness in major technology stocks, following disappointing earnings from Microsoft, which reignited concerns over the returns from heavy investment in artificial intelligence. Investors continued to digest a wave of corporate earnings, including a stronger-than-expected report from Apple.
By 01:40 ET (06:40 GMT), S&P 500 futures were down 0.6% at 6,950.0 points, Nasdaq 100 futures slipped nearly 0.8% to 25,801.75 points, and Dow Jones futures fell 0.6% to 48,864.0 points.
Trump set to name next Fed chair, Warsh seen as front-runner
Trump told reporters on Thursday evening that he plans to unveil his choice for the next Fed chair on Friday morning, describing the candidate as “somebody that could have been there a few years ago.”
Multiple reports suggest Trump is preparing to nominate former Fed governor Kevin Warsh, who lost out to current chair Jerome Powell in 2017. Over the past year, Warsh has broadly aligned himself with Trump’s calls for lower interest rates.
Markets see the nomination as a potential turning point, as it could remove a major source of uncertainty surrounding the long-term direction of U.S. borrowing costs. However, Warsh’s possible appointment has also heightened concerns about the Fed’s independence, amid growing pressure from the White House for aggressive rate cuts.
Earlier this week, the Fed left interest rates unchanged, with Powell cautioning that his successor should avoid being influenced by political considerations.
Wall Street pressured by Microsoft slump; Apple earnings watched
U.S. equities closed lower on Thursday, with technology stocks among the weakest performers. Shares of Microsoft tumbled 10% after the company reported quarterly results showing slower growth in cloud revenue and record spending on AI, which failed to reassure investors about near-term returns.
The decline weighed on the broader software sector, with stocks such as ServiceNow and SAP also falling sharply after their earnings and outlooks disappointed the market.
Attention later turned to Apple’s quarterly results, released after the closing bell. The iPhone maker reported better-than-expected revenue and profit, driven by strong device demand and a recovery in sales in Greater China. Apple posted roughly $143.8 billion in revenue, with earnings per share comfortably above forecasts, lifting its shares nearly 1% in extended trading.
SanDisk jumps on profit beat; Trump backs spending deal
Elsewhere, SanDisk shares surged 16% in extended trading after the company delivered a sizeable profit beat and raised its outlook, citing strong demand for data-center and AI-related memory products.
By contrast, Visa shares edged lower despite topping quarterly earnings and revenue expectations, as investors reacted to weaker transaction volumes and ongoing caution around consumer spending.
On the political front, Trump publicly endorsed a bipartisan spending agreement aimed at avoiding a government shutdown. Posting on Truth Social, he urged lawmakers to support the deal, which would fund most federal agencies while leaving contentious immigration issues for future negotiations.
Reports indicated that leaders from both parties had agreed to the compromise, though the timing of a congressional vote remains uncertain. Lawmakers face a deadline of midnight Friday to approve additional funding for the federal government.
