Money
S&P 500 rises as Nvidia boosts market sentiment
S&P 500 rises as Nvidia expectations outweigh concerns over Trump’s Fed governor removal
S&P 500 rises as Nvidia expectations outweigh concerns over Trump’s Fed governor removal
In Short:
– The S&P 500 rose 0.41% as traders reacted to Trump’s removal of Fed Governor Cook.
– Cook plans to sue Trump, while investors anticipate interest rate cuts from the Federal Reserve.
– The S&P 500 rose 0.41% as traders reacted to Trump’s removal of Fed Governor Cook.
– Cook plans to sue Trump, while investors anticipate interest rate cuts from the Federal Reserve.
The S&P 500 closed higher on Tuesday as traders moved past President Donald Trump’s removal of Federal Reserve Governor Lisa Cook.
The index rose 0.41% to 6,465.94, while the Nasdaq Composite gained 0.44% to finish at 21,544.27. The Dow Jones Industrial Average added 135.60 points, closing at 45,418.07.Long-term Treasury yields increased, while short-term yields fell, indicating that investors expect short-term rates to drop but eventually rise again.
The U.S. dollar index decreased by 0.2%. Cook plans to file a lawsuit against her removal, and the Fed stated it would comply with any court ruling.
Legal Challenge
Lawyer Abbe Lowell asserted Trump has no legal grounds to remove Cook. Currently, there are six Fed board members, and Cook’s removal would create a 4-3 majority for Trump, provided Stephen Miran is confirmed.
Investors remain optimistic about potential interest rate reductions in September, following indications from Fed Chair Jerome Powell.
Adam Crisafulli from Vital Knowledge noted that, while markets may absorb the Cook news quickly, the independence of the Fed is in jeopardy.
