Bonds & Stocks
US equity futures drifted as traders looked to the upcoming earnings season for validation of the artificial intelligence frenzy that has powered a record rally. Futures on the S&P 500 were little changed after the gauge hit another record on Wednesday. Delta Air Lines Inc. climbed more than 5% in premarket trading after reporting profits that beat estimates. PepsiCo Inc. gained on stronger-than-expected revenue and flagged a turnaround at its US beverage unit.
Economy
The Federal Reserve’s top banking cop is kicking off what some executives hope will be the start of an increased focus on community lenders. Michelle Bowman, the Fed’s vice chair for supervision, is a fifth-generation banker who often touts the importance of these smaller institutions – even keeping a red baseball cap in her office at one point with the words “make community banks great again.” But since she took the post in June, she hasn’t unveiled plans for the smaller lenders.
World
France’s caretaker finance minister, Roland Lescure, said the country is on course to meet its budget promises to European Union, even after outgoing premier Sebastien Lecornu indicated there will be less fiscal consolidation next year than previously planned. Lecornu opened the door to smaller cuts in 2026 as part of a deal on economic policy that he says will allow President Emmanuel Macron to appoint a new prime minister by Friday evening.