US stocks shrug off Trump attempt to fire Fed official
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Traders working on the floor of the New York Stock Exchange, in New York City, on Aug 26.
PHOTO: REUTERS
Follow topic:
- US stock indexes rose slightly despite Trump's attempt to remove a Fed governor, a move likely to face legal challenges.
- Investors seem unfazed by Trump's actions, with one expert noting the market is "ignoring" the situation.
- Attention is turning to AI chip maker Nvidia's upcoming results, which could boost or hinder the market.
AI generated
NEW YORK – Wall Street’s major indexes ticked up Aug 26 as investors shook off President Donald Trump’s move to oust a governor from the central bank’s board – an effort now likely headed for the courts.
The Dow Jones Industrial Average rose 0.3 per cent to 45,418.07, while the broad-based S&P 500 climbed 0.4 per cent to 6,465.94.
The tech-heavy Nasdaq Composite Index added 0.4 per cent too, to 21,544.27.
Late on Aug 25, Mr Trump put out a letter to US Federal Reserve governor Lisa Cook on his Truth Social platform, saying she was removed from her position immediately
Dr Cook’s lawyer has since said that they will be filing a lawsuit
“We have to wait and see what develops,” said Mr Peter Cardillo, of Spartan Capital Securities.
For now, he added, it seems like the market is “ignoring” Mr Trump’s effort to remove Dr Cook.
Investors are also keeping an eye on AI chip giant Nvidia’s results due on Aug 27.
“There’s a lot of enthusiasm,” Mr Cardillo said, adding that the enthusiasm could be proven correct “or it could be another problem for the market”.
Nvidia shares closed 1.1 per cent up. AFP
