5 key points to understand before the stock market opens on Thursday

1. Mixed Messages

On Wednesday, President Donald Trump denied any plans to remove Federal Reserve Chairman Jerome Powell. Reports suggested he discussed this possibility with House Republicans, even hinting he might be inclined to act after gaining their support. However, Trump later stated that firing Powell was “very unlikely,” except in cases of misconduct. Initially, stock prices dipped when news of potential changes emerged but rebounded following Trump’s denial. By the end of the day, all major indices finished in the green. Tensions between the White House and the Fed have been rising, as Trump continues to pressure the Fed to lower interest rates. Recently, some officials have been critical of Powell regarding the Fed’s plans to renovate its headquarters in Washington.

2. Crypto Limbo

In a recent session, the House advanced three crypto-regulation bills after pushing back from some House Republicans. They extended the discussion on the legislation, which faced a long voting session that broke previous records. The outcome raised doubts about Republicans’ ability to finalize the Crypto Regulation Bill as scheduled.

3. Little Pop

PepsiCo reported second-quarter revenue that topped Wall Street expectations, which led to a 3% bump in pre-market trading on Thursday. This happened despite indications of softer demand in some areas. CEO Ramon Laguarta mentioned that the domestic business is showing signs of recovery. The company maintained its forecasts, expecting a modest revenue increase for its Fritray and Quaker Food brands.

4. Central

United Airlines has revised its revenue forecast for the year, landing midway between two earlier scenarios. Though it missed some revenue targets, its second-quarter earnings per share surpassed expectations. Demand for domestic coach travel remains strong, while premium and international sectors are doing even better. However, operational difficulties at Newark Liberty International Airport have impacted costs, with some analysts estimating a significant decrease in pre-tax margins due to disruptions caused by air traffic controller shortages. United is optimistic about a stronger finish in 2025 after a challenging start.

5. Backlash

New York state officials are asking Tesla to retract changes to an ordinance that necessitates investors to own 3% of shares to file derivative lawsuits for fiduciary violations. A formal proxy proposal went to the company, alleging that Tesla engaged in “bait and switch” tactics aimed at securing approval for a move from Delaware to Texas. The state fund holds about 0.1% of Tesla’s shares.