26.08.202520:04:29UTC+00US Stocks Inch Higher As Nvidia Climbs Amid Fed Controversy

On Tuesday, the S&P 500 climbed by 0.4%, driven by Nvidia's gains as investors weighed the positive outlook on corporate earnings against concerns over President Trump's unprecedented decision to remove Federal Reserve Governor Lisa Cook. The Dow Jones Industrial Average rose by 135 points, while the Nasdaq also increased by 0.4%. Nvidia's stock advanced by 1.1% in anticipation of its forthcoming quarterly earnings report, amid elevated expectations for the chipmaker amidst ongoing US-China trade tensions. Additionally, Eli Lilly's shares surged by 5.8% following the revelation that its experimental diabetes medication significantly reduces body weight. Despite declines in sectors such as energy and consumer staples, industrial stocks led the gains, enhancing overall market sentiment. The removal of Cook, motivated by allegations of mortgage improprieties, heightened concerns regarding the Federal Reserve's independence, garnering attention from both investors and analysts. Cook has announced her intention to legally contest her dismissal, underscoring the potential long-term risks posed by a politicized central bank.