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Fed Turmoil Sends U.S. Futures Lower as DOJ Targets Powell

U.S. stock futures retreated as investors reacted to an unprecedented clash between the Federal Reserve and the Department of Justice. The downturn followed news that the DOJ has launched a criminal investigation involving Fed Chair Jerome Powell, injecting fresh uncertainty into financial markets already sensitive to policy signals. Dow, S&P 500, and Nasdaq futures all slipped in early trading, reflecting a broad pullback from recent highs. Tech‑heavy Nasdaq futures led the decline as traders reassessed risk appetite. The investigation centers on Powell’s testimony regarding renovations to Federal Reserve facilities. Powell has characterized the probe as politically motivated, suggesting it stems from tensions over the Fed’s resistance to political pressure on interest‑rate decisions. The episode has raised renewed concerns about the independence of the central bank — a foundational element of market stability. Investors are now weighing whether the conflict could influence up...
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S&P/TSX Composite Closes Lower Amid Broader Losses

Canada’s main stock index, the S&P/TSX composite, closed lower on Friday, echoing the trend in U.S. markets. Despite earlier gains, the S&P/TSX composite index ended down 66.37 points at 21,875.79. The decline was driven by weakness in energy and industrials sectors.

Statistics Canada reported that real gross domestic product (GDP) grew 0.3% in April, but the early read for May showed growth slowing to 0.1% for the month. Consumers in Canada appear to be pulling back, impacted by higher interest rates over the past two years. Portfolio manager Hadiza Djataou noted that consumption is taking a hit, influencing stock performance.

In New York, the Dow Jones industrial average was down 45.20 points at 39,118.86, the S&P 500 index dropped 22.39 points to 5,460.48, and the Nasdaq composite fell 126.08 points to 17,732.60. The U.S. Federal Reserve’s preferred inflation gauge indicated a 2.6% rise in consumer prices for May, easing from April’s 2.7% reading.

The Canadian dollar traded at 73.06 cents US, and while Canada’s GDP data didn’t significantly impact interest rate expectations, Djataou anticipates further pressure on the loonie due to diverging economic trajectories between Canada and the U.S.


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