US stock futures nudged lower Tuesday as Wall Street absorbed President Trump's bid to remove Federal Reserve governor Lisa Cook and his fresh threat to impose digital tax-related tariffs.

Dow Jones Industrial Average futures (YM=F) edged down 0.2%, while those on the S&P 500 (ES=F) were off by 0.1%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) also slipped 0.2%, after stocks pulled back from a record-setting rally on Monday.

Investors are treading carefully after Trump took to social media to ramp up pressure in his Fed feud and in his trade offensive.

The president said late Monday that he had determined there was "sufficient cause" to oust Cook, after the top Fed official resisted persistent demands for her resignation over allegations of mortgage fraud. Cook responded by saying Trump didn't have the authority to fire her and that she wouldn't step down.

Longer-dated US bond prices fell amid concerns that Trump's moves against Fed independence and for interest-rate cuts could stoke inflation. The yields on 10-year (^TNX) and 30-year (^TYX) Treasurys rose to about 4.3% and 4.9%, respectively.

On the trade front, Trump vowed to impose fresh tariffs and export curbs on chips and technology from countries that "unfairly" placed taxes on US digital services, speaking in a Monday social media post.

Read more: The latest on Trump's tariffs

The reprisal risks escalating trade tensions between the US and the European Union, as the major trading partners inch toward understanding on tariffs. Wall Street is already monitoring risks in Europe as political turmoil risks collapse for France's government.

Meanwhile, Wall Street is bracing for Nvidia (NVDA) earnings, which land Wednesday after the bell. Expectations for its results are sky-high, with the company's stock up almost 34% so far this year, even as restrictions on chip sales to China have possibly cost the company billions.

Options traders are pricing in about a $260 billion swing in Nvidia's (NVDA) market value following the chipmaker's second-quarter earnings expected on Wednesday, market data has shown.

Reuters reports:

Nvidia options implied a roughly 6% swing for the shares in either direction following the results, which will be reported after markets close on Wednesday, according to the data.

That is below the 7% long-term average move, suggesting that investors may now have a better handle on what to expect as the company matures.

\\"The ripples out of Nvidia might be more interesting than the actual move for Nvidia,\\" said Chris Murphy, co-head of derivatives strategy at Susquehanna, a market maker. \\"A lot of these really high-flyer, speculative AI names have come off a lot, but Nvidia is basically back right below its all-time high.\\"

Read more here.

Small-cap stocks are finally playing catch-up, leaving a market — which has been burned before — wondering if this time is for real, writes Yahoo Finance's Hamza Shaban in today's Morning Brief.

He reports:

Fed Chair Jerome Powell reenergized the stock market on Friday as investors took his Jackson Hole remarks as a wink and a nod that a cut will be coming in September. Not surprisingly, interest rate-sensitive areas surged ahead, putting the small-cap Russell 2000 index up around 4% over the past month.

The boost is a long time coming. While the S&P 500 (^GSPC), Nasdaq (^IXIC), and even the Dow (^DJI) have enjoyed plenty of record highs recently, the euphoria has not trickled down. The Russell 2000 (^RUT) hasn't seen a record close since 2021, despite nearly making it back to the top last fall before crashing once again as the trade war took off.

Even as megacap tickers maintain staggering highs, some analysts see this small-cap run as the beginning of a rotation, signaling an end to the longstanding dominance of the tech giants.

A broadening of the market rally would coincide with the next phase in the economic cycle. And it would allow sky-high valuations to take into account the skepticism of the AI trade, which resurfaced last week amid chatter of corporate restructuring, a lack of return on AI investments, and fear of an AI bubble. ...

But Monday's market action provided the first hint that all that might still not be enough for small caps, as the Russell went back to its lagging ways. While one session alone is hardly proof that the rotation idea is off base, there's a sense that investors betting against Big Tech do so at their peril.

Read more here.

Economic data: FHFA house price index (June); S&P CoreLogic Case-Shiller 20-City; Conference Board Consumer Confidence (August); Richmond Fed manufacturing index (August)

Earnings: BMO (BMO), MongoDB (MDB), Okta (OKTA), PVH (PVH)

Here are some of the biggest stories you may have missed overnight and early this morning:

Trump moves to oust Fed's Cook, escalating unprecedented fight

Small caps are finally getting rate cuts — but might still lag

Trump threatens more tariffs in digital tax reprisal

AT&T to buy spectrum licenses from EchoStar for about $23B

Corporate America's buoyant tone at odds with Wall Street angst

Trump targeting Cook shows his Fed feud has limits

Nvidia set for $260 billion price swing after earnings

30-year Treasury yield rises as Trump targets Fed's Cook

France's government risks new collapse, weighing on markets

Here's a look at some of the top stocks trending in premarket trading:

Wolfspeed (WOLF) shares jumped more than 3% premarket after its fourth quarter results. The chipmaker, which has been grappling with a Chapter 11 and a restructuring, reported a loss per share $4.30, compared to a loss of $1.39 per share during the same period a year ago. Revenue came in at $197 million, compared to $201 million the previous year. Wall Street analysts expected worse results.

Interactive Brokers Group (IBKR) stock rose 3% before the bell on news it will be joining the S&P 500 (^GSPC) at the start of trading on Thursday, replacing Walgreens Boots Alliance.

Constellation Brands (STZ) stock fell over 1% premarket on Tuesday and was down more than 1% after dropping 2% Monday. RBC Capital cut its price target on the beer, wine and spirits company to $230 from $233, though it maintained an Outperform rating.

Gold (GC=F) rose overnight Monday as news of President Trump's announced intent to remove Federal Reserve Governor Lisa Cook from her position. With uncertainty around the legality of the move, or the broad impact upon markets, investors pushed up the haven asset as a safeguard against instability.

Bloomberg reports:

Bullion climbed as much as 0.6% in early Asian trading, erasing an earlier decline, after Trump posted a letter with the announcement on his Truth Social account late on Monday. The dollar weakened against every major peer and short-dated Treasury yields slipped, adding support for gold, which is priced in the currency.

The move is Trump’s latest attempt to pressure the Fed leadership, whom he has called on repeatedly but unsuccessfully to lower interest rates. The central bank has held monetary policy steady so far in 2025 amid concerns that Trump’s tariffs will fuel inflation, though on Friday Chair Jerome Powell signaled a potential adjustment in September. Lower rates tend to benefit non-yielding gold.

Forcing out Cook, who is facing allegations of mortgage fraud, would allow Trump to secure a four-person majority on the seven-member board. Earlier this month, he chose Council of Economic Advisers Chairman Stephen Miran to serve in the place of Adriana Kugler, who vacated her position early.

Read more here.