Stock Market Update

Equity futures point to a mostly higher open after yesterday's mega-cap-led action saw the Nasdaq Composite and S&P 500 secure new all-time intraday and closing highs, with the S&P 500 closing above the 6,600 mark for the first time. 

The September FOMC meeting kicks off this morning and brings with it several notable developments to recent headlines. 

A federal appeals court has determined that Fed Governor Lisa Cook cannot be fired before the meeting, upholding a lower court ruling that prevented her firing as the lawsuit plays out, according to CNBC. 

Ms. Cook will therefore be voting in this week's meeting, as will Stephen Miran, whose Fed Governor nomination was confirmed by the Senate yesterday evening. The Wall Street Journal reports that Mr. Miran will keep his current role as Chairman of the Council of Economic Advisers, taking unpaid leave while he fulfills his Fed Governor duties. 

Treasury Secretary Scott Bessent noted in a CNBC interview this morning that the current plan is for Mr. Miran to return to his White House role when his Fed Governor seat expires in January, at which time another person will be appointed. 

In corporate news:

• An SEC spokesperson issued a statement to CNBC, saying the agency is "prioritizing the proposal" to allow companies to report every six months instead of three months following a request from President Trump.
• Alibaba (BABA 158.00, -0.04, -0.0%) looks to push further into artificial intelligence, according to Bloomberg. 
• Moderna (MRNA 23.95, +0.07, +0.3%) announced that its updated COVID-19 vaccine against the LP.8.1 variant generates a strong immune response in humans.
• NVIDIA's (NVDA 177.30, -0.45, -0.3%) new RTX6000D chip made especially for AI use in China has seen only modest demand, according to Reuters. 
• Oracle (ORCL 318.20, +16.06, +5.3%) will enable TikTok to continue U.S. operations following a framework of agreement between the Trump administration and China, according to CBS News.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region were flat to higher on Tuesday, with South Korea's Kospi (+1.2%) leading on its way to an eleventh consecutive gain that vaulted it further into record territory even though tariff talks with the U.S. remain in a deadlock, per the presidential office. Japan's Nikkei: +0.3%, Hong Kong's Hang Seng: flat, China's Shanghai Composite: flat, India's Sensex: +0.7%, South Korea's Kospi: +1.2%, Australia's ASX All Ordinaries: +0.3%.

In news:

• The Kospi is up 51% from its April low.
• Japan's Nikkei topped 45,000 for the first time ever, coming off yesterday's holiday closure, before backtracking a bit.
• Today marked the implementation of the reduced 15% tariff rate (from 27.5%) on imports of Japanese vehicles and auto parts to the U.S.
• Separately, the Bank of Japan meets Friday and is expected to hold its key policy rate at 0.50%.
• Chinese markets were little changed after officials from the U.S. and China announced that a framework agreement for a TikTok deal has been reached. President Trump and President Xi are expected to talk on Friday.

In economic data:

• Japan's July Tertiary Activity Index 1.40 (last 3.90)
• South Korea's August Export Price Index -1.0% yr/yr (last -4.5%) and Import Price Index -2.2% yr/yr (last -5.9%)
• Hong Kong's August Unemployment Rate 3.7% (last 3.7%)

Major European indices are showing modest losses leading up to the start of trading in the U.S. STOXX Europe 600: -0.2%, Germany's DAX: -0.4%, U.K.'s FTSE 100: -0.3%, France's CAC 40: -0.1%, Italy's FTSE MIB: -0.3%, Spain's IBEX 35: -0.8%. In news:

• Markets haven't been swayed much by corporate news, as the attention has been concentrated on economic data that has featured better-than-expected economic sentiment readings for Germany and the eurozone and a higher-than-expected claimant count for the UK.
• The BOE is expected to leave its key policy rate unchanged at 4.00% at Thursday's meeting.
• On a related UK note, President Trump begins his UK state visit this evening.
• ECB member Kazaks said there is no reason to cut rates further right now, a view that is helping to underpin the euro.

In economic data:

• Eurozone's July Industrial Production 0.3% m/m (expected 0.4%; last -0.6%) and 1.8% yr/yr (expected 1.7%; last 0.7%); September ZEW Economic Sentiment 26.1 (expected 20.3; last 25.1)
• Germany's September ZEW Economic Sentiment 37.3 (expected 25.3; last 34.7) UK's July Unemployment Rate was 4.7% (expected 4.7%; last 4.7%) and Average Earnings ex Bonus 4.8% yr/yr (expected 4.8%; last 5.0%); August Claimant Count 17.4K (expected 15.3K; last -33.3K)
• Italy's August CPI 0.1% m/m (expected 0.1%; last 0.4%) and 1.6% yr/yr (expected 1.6%; last 1.6%)