Particle.news
Download on the App Store
31 ARTICLES
·
4h ago

Wall Street Holds Gains as Trump’s Bid to Remove Fed Governor Heads to Court

Markets are pricing a September rate cut despite the fight over Fed governance.

Trader Michael Milano left, works on the floor of the New York Stock Exchange, Monday, Aug. 18, 2025. (AP Photo/Richard Drew)
This photo, taken Aug. 27, 2025, shows the dealing room of Hana Bank in Seoul. (Yonhap)
A screen shows stock prices on the floor of the New York Stock Exchange, Friday, Aug. 1, 2025, in New York. (AP Photo/Yuki Iwamura)
U.S. President Donald Trump looks on as Jerome Powell, his nominee at the time to lead the U.S. Federal Reserve, moves to the podium at the White House in Washington, U.S., November 2, 2017. REUTERS/Carlos Barria//File Photo

Overview

  • President Donald Trump posted a letter saying he removed Federal Reserve Governor Lisa Cook for cause, and Cook’s lawyer said she will sue on grounds the president lacks authority.
  • The S&P 500, Dow and Nasdaq each rose about 0.3% to 0.4% as investors looked to Nvidia’s earnings, with options implying roughly a $260 billion potential swing in its market value.
  • Treasury markets steepened after the Cook move, with the two‑year yield sliding to about 3.65% and the 30‑year near 4.92%, while futures pricing kept high odds of a September Fed rate cut.
  • White House officials signaled openness to taking equity stakes in companies after converting CHIPS Act grants into a 10% Intel holding, and said potential defense‑sector purchases are under consideration.
  • Corporate headlines supported sector moves: AT&T agreed to buy $23 billion in spectrum from EchoStar, Boeing rose on a large Korean Air aircraft deal, and Eli Lilly jumped on positive Phase 3 results for its oral weight‑loss drug.