The dollar pared most of its losses as Federal Reserve Governor Lisa Cook said she won’t resign after President Donald Trump moved to oust her. A gauge of the dollar retreated as much as 0.3% and gold rose as much as 0.6% after Trump posted on his Truth Social account that Cook will be removed effective immediately. The greenback then cut some of the losses and gold trimmed gains after Cook said she won’t resign. Asian stocks fell 0.7% and equity-index futures for US and Europe retreated. The Treasury curve steepened, with a drop in two-year yields reflecting growing speculation of a Fed interest-rate cut as soon as next month, while 30-year yields climbed on concern looser monetary policy would risk fueling inflation. French bond futures opened lower in Asia trading. Trump’s move adds to the negative sentiment toward US assets, after his tariff war and widening deficit revived a “Sell America” theme earlier this year and Wall Street questioned US exceptionalism. Traders have been seeking alternatives to the dollar, the world’s reserve currency, and Treasuries, and any perception of eroding Fed independence could accelerate that shift. Trump’s announcement came after the US Department of Justice indicated it planned to investigate Cook, following a criminal referral from Federal Housing Finance Agency Director Bill Pulte alleging that she may have committed mortgage fraud. UBS Global Wealth Chief Investment Officer (South Asia Pacific) Kelvin Tay comments on US President Trump’s move to fire the Fed’s Lisa Cook. It wasn’t immediately clear whether Cook intended to challenge the dismissal in the courts.
That investigation marked the latest in a series of moves by the Trump administration both to increase legal scrutiny of Democratic figures and put pressure on the central bank. Cook said Trump has no authority to fire her, and she won’t quit. Cook’s lawyer, Abbe Lowell, said they plan to take “whatever actions are needed to prevent” Trump’s “illegal action.” Cook is likely to sue to challenge the removal and “we believe she can win,” wrote Bloomberg Intelligence analyst Elliott Z Stein. Mere allegations of fraud are likely insufficient to meet the “for cause” removal standard unless actual wrongdoing is established, which at minimum likely requires an investigation and possibly a conviction, he wrote. Risk to the independence of the Fed was also flagged as a concern by S&P Global Ratings earlier this month while affirming the AA+ rating for the US — a score it’s given since 2011, when it first downgraded the world’s largest economy from AAA. Meanwhile, contracts for the Nasdaq 100 fell 0.2% as Trump also threatened to place export curbs on chips. Stocks were already under pressure after initial optimism about the Fed lowering interest rates vanished and US stocks retreated Monday. Stocks rallied on Friday after Federal Reserve Chair Jerome Powell opened the door for a possible interest-rate cut. The sense of euphoria eased as doubts over the pace of those reductions lingered on Wall Street as traders braced for a not-so-friendly price reading later this week. Policymakers are grappling with inflation that’s still above their 2% goal — and rising — and a labor market that’s showing signs of weakness. That unnerving reality, which pulls policy in opposite directions, is made worse by a high degree of uncertainty about how each of those factors will evolve over the coming months. The Fed’s preferred gauge of underlying inflation probably ticked higher last month, with the personal consumption expenditures price index excluding food and energy rising 2.9% from a year ago. That would be the fastest annual pace in five months. Elsewhere, French bond futures opened lower after Prime Minister Francois Bayrou called a confidence vote that may topple France’s government as soon as next month. Aside from the macro picture, the next big test for the stock market will be a read on what’s been driving gains for the past few years: artificial-intelligence euphoria. Nvidia Corp. is due to unveil its results Wednesday after the close. The company’s size — it has the biggest weighting in the S&P 500 at almost 8% — and its position at the center of AI development have made it a bellwether for the broader market. US After Hours IBKR +4.1% to join S&P 500; TLN +4.6% to join S&P MidCap 400; KNTK +5.9% to join S&P SmallCap 600; NVTS +0.5% names a new CEO; HEI +1.1%, SMTC +0.5% slightly higher on earnings.
Nikkei -0.88% Hang Seng -0.12% CSI -0.04% Shanghai -0.07% Shenzen +0.51%
Eur$ 1.1630 CNH 7.1556 CNY 7.1537 JPY 147.87 GBP 1.3454 CHF 0.8058 RUB 80.7193 TRY 41.0218 WTI$ 64.46 -0.52% Gold 3,374 +0.23% BTC 110,255 +0.62% ETH 4,440 +2%
S&P -0.05% Nasdaq -0.10% EuroStoxx -0.39% FTSE -0.27% Dax -0.22% SMI -0.12%
Macro :
- BofA, UBS See Small-Cap Outperformance as Powell Turns Dovish
- Norway’s Wealth Fund Excludes Israeli Banks, Caterpillar
- Crypto Fund Pantera Seeks to Raise Up to $1.25 Billion for Solana Deal
- BlackRock Halts Funding for Private Credit Fund
Keep an eye on :
Keep an eye on :
- AMZN US : The Future of Streaming Is Different Ad Loads for Each Viewer
- AMZN US : Amazon, Korea Hydro to Partner on Small Modular Reactors for AI
- AS US : Amer Sports Holder Anamered Said to Seek $163m in Block Sale
- ARBN SW : Arbonia 1H Ebitda Meets Estimates
- BAKKA NO : Bakkafrost Sees FY Harvest About 104,000 Metric Tons
- BELL SW ; Bell Food Group Names Sven Friedli as CFO
- BIOAB SS : BioArctic, Novartis Sign Option, Collaboration, License Deal
- Bitpanda : Peter Thiel-Backed Bitpanda Rules Out UK Listing: FT
- BA US : Korean Air to Buy $50b Boeing Jets, GE Engines; Shres Drop
- BNZL LN : Bunzl 1H Revenue Matches Estimates
- BWLPG NO : BW LPG 2Q EPS Misses Estimates
- 1211 HK : BYD +3.11%
- CAP FP : Capgemini to Buy Cloud4C; No Terms
- CSX US : CSX Falls on Report Berkshire Not in Market for a Train Firm
- DEME BB : DEME Group 1H Turnover Beats Estimates
- DMP GY : Dermapharm Maintains FY Adjusted Ebitda Forecast
- EPISB SS : Episurf Medical announces final outcome of the rights issue
- GENI LN : GENinCode Says Performance is in Line With Expectations
- GPRO US : GoPro Calls Snapped Up as Shares Surge 36%
- GSF NO : Grieg Seafood Cuts FY Harvest Forecast After Sale of Operations
- IBRK US : *INTERACTIVE BROKERS TO REPLACE WALGREENS IN S&P 500 *INTERACTIVE BROKERS SHARES RISE 5% ON S&P 500 INCLUSION
- IFX GY : Infineon is accelerating the development of humanoid robotics with NVIDIA (NVDA) technology
- ISN SW : Intershop 1H Net Income CHF175.9M Vs. CHF52.7M Y/y
- JDEP NA : Keurig Slides Amid Deal Risks, JAB Cashing Out of JDE Peet
- KUD SW : Kudelski 1H Ebitda Loss $19.1M Vs. Loss $11.7M Y/y
- 3690 HK : Meituan Likely to Post Big Profit Decline in Food Wars: Preview
- MNG LN : M&G, Schroders, Hargreaves Lansdown Eye Master Trust Market: FT
- NOVN SW : BioArctic, Novartis Sign Option, Collaboration, License Deal
- ORSTED DC : Orsted Faces Growing Crisis After Trump Halts Work at Wind Farm
- ORSTED DC : Orsted Seeks to Calm Investors Ahead of $9.4 Billion Share Sale
- 1913 HK : Prada +2.88%
- ROG SW : Roche Breaks Ground on North Carolina Obesity Drug Factory
- Space X : SpaceX Delays Starship Launch Due to Unfavorable Weather
- TEF SM : Telefonica Main Holders Back Vodafone Espana Deal: Confidencial
- VLA FP : Vaccine Stocks Down After Report on Push to Scrap Covid Shots
- VAR NO : Var Reaches 400,000 boepd Output Milestone Ahead of Schedule
- WG/ LN : Dubai's Sidara Consortium Cuts Wood Group Offer Price After Completing Due Diligence
- 9868 HK : XPeng : +2.57%
- YAR NO : Fertilizer Stocks Rise on USGS’ Critical-Minerals Proposal
- YAR NO : Fertilizer Stocks Rise on USGS’ Critical-Minerals Proposal
- ZEAL DC : Roche Breaks Ground on North Carolina Obesity Drug Factory
- FHZN SW : Zurich Airport 1H Ebitda Beats Estimates