U.S. stock futures rose slightly Thursday, with the S&P 500 approaching record highs. Meanwhile, former President Donald Trump is reportedly considering replacing Federal Reserve Chair Jerome Powell amid ongoing dissatisfaction with the Fed’s measured policy approach. Elsewhere, shares of Chinese EV leader BYD declined following reports of reduced production, and Shell has denied rumors of a potential acquisition of rival BP.

U.S. Futures Inch Higher

Stock futures pointed to modest gains early Thursday. As of 03:10 ET, Dow futures were up 84 points (+0.2%), S&P 500 futures rose 14 points (+0.2%), and Nasdaq 100 futures climbed 74 points (+0.3%).

Wall Street ended Wednesday’s session mixed, breaking a two-day rally. Investors were weighing geopolitical developments, including a possible ceasefire between Israel and Iran, alongside Federal Reserve Chair Jerome Powell’s testimony to Congress.

Attention is now on Friday’s release of the Personal Consumption Expenditures (PCE) price index — the Fed’s preferred inflation gauge. Powell reiterated a cautious, data-dependent approach on rate decisions, emphasizing economic uncertainty, especially amid the effects of U.S. tariffs.

“Markets appear to be trusting the ceasefire […], and the dollar is retesting its lows. U.S. data is likely to take center stage now, especially given Powell’s subtly dovish tone,” ING analysts noted.

Trump Weighs Replacing Fed Chair Powell

Former President Donald Trump is reportedly narrowing down a list of candidates to replace Jerome Powell as head of the Federal Reserve. Trump has repeatedly criticized Powell’s reluctance to cut interest rates more aggressively, claiming it’s costing the federal government hundreds of billions in interest payments.

According to The Wall Street Journal, Trump could announce a replacement as early as this summer, though September or October is more likely. His remarks on Wednesday even included questions about Powell’s mental fitness, intensifying speculation over a leadership shake-up at the central bank.

BYD Stock Drops on Production Slowdown

Shares of BYD Co. (SZ:002594), one of China’s top electric vehicle manufacturers, fell over 2% following a Reuters report stating the company has scaled back production and delayed expansion efforts.

Citing sources familiar with the matter, the report said BYD had canceled night shifts and reduced output by at least one-third at four Chinese plants. Plans to install new production lines were also postponed as the company deals with rising inventory levels and cost pressures.

Despite surpassing Tesla in 2023 with record sales of 4.27 million vehicles — and a 2024 target of 5.5 million — BYD faces growing competition and shrinking margins in a crowded EV market.

Shell Denies Plans to Acquire BP

Shell has denied media reports suggesting it is considering a takeover of BP. In an official statement, the oil giant said it has not made an approach and has no intention of making an offer.

Under U.K. takeover rules, this public denial now restricts Shell from making a formal bid for BP for six months.

“Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach nor held discussions,” the company stated.

The Wall Street Journal had previously reported that Shell was in early discussions about a possible acquisition of BP, citing sources familiar with the situation.

Oil Prices Rise on Inventory Drawdown

Crude oil prices edged higher following news of a larger-than-expected drop in U.S. stockpiles, a sign of robust demand.

By 03:15 ET, Brent crude was up 0.2% at $66.54 per barrel, while West Texas Intermediate (WTI) rose 0.1% to $65.00.

Both benchmarks gained nearly 1% on Wednesday, bouncing back from earlier losses after data from the Energy Information Administration showed U.S. crude inventories dropped for a fifth consecutive week—by 5.8 million barrels. Gasoline stockpiles also declined by 2.1 million barrels, with demand reaching its highest level since December 2021.

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