Pre-Market | Federal Reserve Independence at Risk as Inflation Fears Rise

4 Sep., DOW FUTURES down 0.14% in pre-market, NASDAQ FUTURES up 0.17% in pre-market, S&P FUTURES up 0.11% in pre-market. Investors are increasingly concerned about potential erosion of Federal Reserve independence due to political pressures for rate cuts, raising inflation risks. This could spur demand for gold as a hedge, with projections indicating a significant surge in prices under extreme scenarios.

In pre-market trading, The Southern saw a rise of 3.84% due to a favorable change in its price-to-sales multiple. Applovin also experienced a 2.39% increase, driven by rising web traffic to customer sites, which forecasts higher demand for its services. Meanwhile, Sanofi dropped 9.80% after its late-stage trial for an eczema drug failed to meet expectations. Salesforce also saw a significant drop of 7.49% due to a weak revenue forecast that missed market expectations.

In pre-market trading, BrilliA surged nearly 97%, driven by a cash dividend declaration, indicating strong fundamentals and growth confidence. Bolt Projects rose over 74% as executives corrected a prior reporting error by acquiring additional shares. Meanwhile, Neonode plummeted over 81% with trading halted pending a major news announcement. Artelo Biosciences dropped nearly 34% following an announcement of a public offering to fund cancer drug development.

Investor concerns are growing over potential erosion of the Federal Reserve's independence, heightening fears of rising inflation that could disrupt equity, bond, and gold markets. Should the Fed's credibility weaken, a shift from U.S. Treasuries to commodities like gold might drive prices toward $5,000 per ounce amid broader inflationary pressures and potential dollar devaluation. Nasdaq has proposed revised listing rules, including raising the minimum market capitalization for public floats to $15 million from $5 million and accelerating delistings for firms falling below thresholds, alongside introducing a $25 million fundraising requirement for newly listed companies primarily operating in China.