MONEY MASTER

Quick Summary US stock futures fell sharply  after Donald Trump signalled an imminent Fed chair announcement Kevin Warsh is widely seen as the frontrunner , with prediction markets pricing a 94% probability Dollar and Treasury yields ticked higher , pressuring equities Markets view Warsh as  moderate — not aggressively dovish , raising liquidity concerns What’s Driving the Market US equity futures retreated after President  Donald Trump  said he has  firmed up his choice  to replace Fed Chair  Jerome Powell , with reports pointing to  Kevin Warsh . Bloomberg and Reuters reported that Warsh  visited the White House on Thursday , fuelling expectations of a formal nomination as early as Friday. Why Markets Are Nervous While Warsh is seen as  supportive of lower interest rates , investors are focused on his reputation for: Caution on heavy monetary stimulus Preference for a  smaller Fed balance sheet Key tension:  Lower rates, but ...

  Index Movements: Nasdaq Composite : ▲ +0.3% to 20,730.49 (New Record High) Dow Jones Industrial Average : ▲ +0.5% to 44,254.78 S&P 500 : ▲ +0.3% to 6,263.70 Macro Overview: Markets Rally on Tame Inflation and Trump’s Clarification U.S. equity markets ended higher Wednesday, led by another  record close for the Nasdaq Composite , as investors digested softer inflation data and  President Trump’s denial of plans to fire Fed Chair Jerome Powell . Markets wobbled midday following reports that Trump asked Republicans about removing Powell due to dissatisfaction over interest rate policy. However, Trump later clarified: "We're not planning on doing it... unless he has to leave for fraud." Investors also welcomed  tamer wholesale inflation : June PPI  eased to  2.3% YoY , down from 2.7% in May, moving closer to the Fed’s 2% target. This bolsters the case for a  potential rate cut , lifting investor sentiment. Movers of the Day: Mega-Cap and Sector Actio...

Geopolitical Risk Alert: U.S.–EU Trade Tensions Escalate The  European Union  is drawing up a  new retaliatory tariff list worth $84B  in American goods — including aircraft, alcohol, coffee, and medical devices — in response to  President Trump's threat of 30% blanket tariffs  on EU imports, set to begin  Aug. 1  if no trade deal is reached. What’s in the EU’s Tariff Crosshairs? $77B industrial goods : aircraft, autos, machinery, plastics, medical devices $7B food & agri : wine, beer, spirits, fruits, coffee Potential escalation : Legal tools like the  anticoercion instrument  could target: U.S. digital services & advertising IP rights restrictions Public tender bans on U.S. firms Timeline & Negotiation Status A prior  $24B retaliation package  was paused in April, and remains on hold until early August. The new  $84B package  has been trimmed down from $111B after consultations and still needs  form...