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S&P 500: U.S. stocks moved slightly higher on Tuesday, with gains in health care and technology shares balancing out concerns about fresh political pressure on the Federal Reserve. By early afternoon trading, the Dow was up just 4 points, the S&P 500 inched 0.1% higher, and the Nasdaq added 0.2%.
The spotlight was on Fed independence after President Trump announced the sudden removal of Lisa Cook from the central bank’s board. Trump said the decision stemmed from allegations of mortgage fraud, though Cook denied the claims and insisted she would not step down under pressure. The move marked another clash between Trump and the Fed, raising fears of political interference in an institution that has historically operated outside of government control. Earlier this year, Trump also tried unsuccessfully to oust Fed Chair Jerome Powell, who resisted the president’s calls for immediate rate cuts.
While politics kept investors uneasy, the market found some relief in strong gains from health care stocks. Eli Lilly jumped more than 4% after saying its once-daily weight-loss pill met key goals in late-stage trials, putting it on track for global approval this year. Analysts suggested the drug could become a multi-billion-dollar blockbuster. Shares of Regeneron and Henry Schein also rose, helping to push the broader health care sector higher.
Fresh economic data offered a mixed picture but leaned positive. Consumer confidence dipped slightly in August, though the decline wasn’t as sharp as expected. Business spending also showed resilience, with new orders for key capital goods climbing 1.1% in July after a drop in June. However, overall durable goods orders fell 2.8%, dragged down by weak aircraft sales. Investors largely shrugged this off, with Wall Street still betting on a September interest rate cut from the Fed. Analysts at Morgan Stanley now expect rates to keep coming down steadily through 2026.
Looking ahead, Thursday will bring a new reading on second-quarter GDP and the latest weekly jobless claims. Economists anticipate growth could be revised higher to 3.2%.
Meanwhile, all eyes are on Nvidia, which reports results Wednesday. The chipmaker is seen as a major barometer for the artificial intelligence boom, and analysts expect revenue to surge nearly 50% year over year. Its performance could help set the tone for tech stocks, especially after AI-related names stumbled last week.
Apple also gave markets a small boost after confirming a September 9 event, widely expected to unveil the iPhone 17.