US: Stocks shrug off Trump attempt to fire Fed official
[NEW YORK] Wall Street’s major indexes ticked up on Tuesday 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 Monday, Trump put out a letter to Fed Governor Lisa Cook on his Truth Social platform, saying she was removed from her position immediately over claims of mortgage fraud.
Cook’s lawyer has since said that they will be filing a lawsuit to challenge Trump’s “illegal action,” while Cook separately added that the president had “no authority” to fire her.
“We have to wait and see what develops,” said Peter Cardillo of Spartan Capital Securities.
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For now, he added, it seems like the market is “ignoring” Trump’s effort to remove Cook.
Investors are also keeping an eye on AI chip giant Nvidia’s results due Wednesday.
“There’s a lot of enthusiasm,” 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
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