Dow, S&P 500, Nasdaq rise amid Trump-Fed tensions, Nvidia earnings ahead
U.S. stocks edged higher on Tuesday as Wall Street reacted to President Trump's move to remove Federal Reserve Governor Lisa Cook, while investors shifted their attention to Nvidia’s (NVDA) upcoming earnings report this week.
The Dow Jones Industrial Average (^DJI) rose 0.3%, while the S&P 500 (^GSPC) climbed 0.4%. The tech-heavy Nasdaq Composite (^IXIC) rose 0.4%. The move higher among the major gauges follows a pullback in stocks on Monday after a record-setting rally at the end of last week, News.Az reports citing foreign media.
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 said she won't step down. Cook's attorney said she would file a lawsuit to challenge what he called an "illegal action."
On Tuesday, Trump signaled that his administration has "very good people" in mind for Cook's position, adding that he expects to soon hold "a majority" at the Fed, paving the way to lower rates.
Longer-dated US bond prices fell amid concerns over Trump's moves against Fed independence, as he pushed for interest rate cuts that could stoke inflation. The yield on 10-year (^TNX) Treasurys fell to 4.26%, while longer-term 30-year (^TYX) Treasurys rose to 4.9%. The US dollar (DX=F) index fell.
Similar news
