US Stock Market Today: S&P 500 falls 0.1%, NASDAQ 100 drops 0.1%, NVIDIA Gains 0.5%

US stocks traded in mixed territory on Tuesday, as bond yields climbed and concerns about the Federal Reserve’s independence resurfaced. The S&P 500 Index dropped by 0.1% after six consecutive days of losses, remaining within 0.4% of its record high. 

The NASDAQ 100 Index also dropped 0.1%, mainly because of declines in Charter Communications Inc. Despite the overall decrease, stocks like NVIDIA Corp. showed marginal gains, rising by 0.5%.

Trump's Controversial Move to Fire Fed Governor

In an action that raised attention, President Donald Trump moved to oust Federal Reserve Governor Lisa Cook. This unprecedented move is in response to accusations that Cook falsified mortgage documents, but no charges have been filed. 

However, Trump's attempts to influence the appointments to the Federal Reserve have raised concerns about the reserve's independence and future monetary policy.

Economist Michael Feroli from JPMorgan Securities commented that if Trump succeeds, it would allow him to reshape the Federal Reserve board in his favor. Currently, there are six members on the board, with one seat vacant. 

A successful removal of Cook would reduce the board's members further, with Trump potentially gaining a 4-3 majority. Critics worry that such moves undermine the Fed’s credibility, especially amid concerns over inflation and interest rates.

Corporate Developments and Economic Data

Corporate stocks showed a mixed performance. Interactive Brokers surged by 0.9% after it was announced that it would be included in the S&P 500 index. Meanwhile, EchoStar jumped up by around 80% as AT&T finalized an agreement to acquire spectrum licenses by spending $23 billion. 

On the other hand, Eli Lilly jumped by 2.3% after its obesity drug performed well in clinical trials, which suggests a possible breakthrough by the company in the pharmaceutical sector.

Economic data also provided mixed signals. In July, orders placed on US business equipment came in higher than expected, indicating increased corporate investment. 

Nonetheless, Trump is threatening the imposition of new tariffs on advanced technology and semiconductors, which casts a shadow on trade relations. This comes after the president urged tariffs to be imposed on countries that levy digital taxes on American tech companies.

Markets now look toward NVIDIA's earnings report, which is scheduled for Wednesday. Investors are eager to see how it will affect the performance of the rest of the tech space. 

Analysts anticipate that NVIDIA's results will provide additional evidence of the increasing demand for artificial intelligence technologies, which have recently been one of the leading drivers of US stock gains.

Also Read: NVIDIA Stock Dips 1.15% as China Pushback Halts H20 AI Chip Production