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10:25Now PlayingComprehensive cross-platform coverage of the U.S. market close on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Scarlet Fu, Carol Massar and Tim Stenovec.
The dollar fell and longer-dated Treasury yields rose as President Donald Trump’s push to remove Federal Reserve Governor Lisa Cook fueled concern about central bank independence and inflation risks. Stocks eked out gains before Nvidia Corp.’s results.
While the moves were modest in listless summer trading, they underscored growing unease over political interference in monetary policy. That could give Trump another chance to name someone to the Fed board as he repeatedly pressures officials to cut rates.
The slide in 30-year Treasuries followed losses in longer-dated debt from France and the UK, extending a drop that’s been driven by concerns about inflation and ballooning budget deficits. A solid $69 billion sale of two-year notes added to gains in short-dated maturities. The gap between five and 30-year yields is the steepest since 2021.
While a dollar gauge dropped just 0.2%, it underperformed most major currencies. The S&P 500 added 0.4%, with Nvidia pacing gains in megacaps. UnitedHealth Group Inc. slipped as an ongoing criminal probe was said to be broader than an inquiry into possible Medicare fraud.
Trump said he was prepared for a legal fight after he moved to oust Cook amid allegations she falsified mortgage documents. The Fed, weighing in for the first time this week, said it would abide by any court decision in Cook’s legal challenge of her dismissal by Trump.
Even as political headlines flare, investors remain anchored to a bullish market script: a likely September rate cut, resilient economic growth, and corporate earnings strong enough to keep equity sentiment afloat.
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