Market Snapshot for Tuesday August 26th, 2025
S&P 500 – 6,465.94 (+0.41%)
Dow Jones – 45,418.07 (+0.30%)
NASDAQ – 21,544.27 (+0.44%)
Market Performance
The S&P 500 closed higher on Tuesday as investors looked past President Donald Trump’s removal of Federal Reserve Governor Lisa Cook and awaited quarterly results from chip giant Nvidia.
The broad-market S&P 500 rose 0.41% to 6,465.94, while the tech-heavy Nasdaq Composite added 0.44% to finish at 21,544.27. The Dow Jones Industrial Average gained 135.60 points, or 0.30%, closing at 45,418.07.
Cook plans to challenge her removal in court, her attorney said. The Fed stated it “will abide by any court decision” on the matter.
“President Trump has no authority to remove Federal Reserve Governor Lisa Cook,” lawyer Abbe Lowell said. “His attempt to fire her, based solely on a referral letter, lacks any factual or legal basis.”
Trump’s unprecedented action adds to pressure on the Fed’s independence. By law, a president may remove a Fed governor only “for cause.”
The Fed currently has six members, with one seat vacant after Adriana Kugler’s resignation earlier this month. Removing Cook would leave five members, with non-Trump appointees still holding a majority. However, if Stephen Miran is confirmed to fill the Kugler vacancy and Trump succeeds in removing Cook, the president could secure a 4-3 majority. If Fed Chair Jerome Powell steps down at the end of his term in May, that could provide a fifth vote for Trump.
Economic Takeaways –
- Long-term Treasury yields climbed following Trump’s move, while short-term yields fell, steepening the yield curve on expectations that rates may decline in the near term but rise later as a politicized Fed may pay less attention to inflation.
- The U.S. dollar index, which tracks the greenback against major currencies, was down 0.2%.
- Consumer confidence came in stronger than expected in August. The survey of consumer attitudes toward their financial prospects came in at 97.4, according to the index released by the Conference Board on Tuesday. That’s better that the 96.5 Dow Jones consensus estimate.
- U.S. durable goods orders in July came in better than anticipated. Last month, orders fell 2.8%, while economists polled by Dow Jones had estimated a decline of 4.1% on the month.
Gold –
- The SPDR Gold Shares ETF (GLD) added around 0.6% in midday trading. By comparison, the broad S&P 500 sat just above its flatline.
- Gold prices climbed to an over two-week peak on Tuesday, lifted by safe-haven demand, as investor confidence in the U.S. central bank wavered following President Donald Trump’s dismissal of a Federal Reserve governor.
- Spot gold gained 0.5% to $3,382.19 an ounce at 01:50 p.m. ET (1750 GMT), its highest level since August 11.
Oil –
- Oil prices fell 2% on Tuesday, erasing gains from the previous session.
- Brent crude was down $1.58, or 2.3%, at $67.22 a barrel, a day after hitting its highest price since early August. West Texas Intermediate (WTI) crude lost $1.55, or about 2.4%, to $63.25.
- “Given the huge amount of uncertainties in the oil market caused by the Ukrainian conflict and the tariff war, investors will remain unwilling to commit themselves to either direction on a prolonged basis,” said Tamas Varga, an analyst with PVM Oil Associates.
Crypto –
- Trump Media and Technology Group, which operates the Truth Social media platform, announced Tuesday that it was partnering with the cryptocurrency exchange Crypto.com to form a company that holds CRO, a token created by Crypto.com.
- Bitcoin (BTC) and other cryptocurrencies were dropping again on Tuesday, extending a poor recent run for digital assets.
Economist Jeffrey Roach Predicts ‘Soft’ August Jobs Report
The nonfarm payrolls report scheduled for next Friday is expected to be “on the soft side,” according to Jeffrey Roach, chief economist at LPL Financial.
“Consumers are feeling a softening job market,” Roach said. “I expect August payrolls to come in around 60,000, net of revisions.”
For comparison, economists surveyed by FactSet are forecasting nonfarm payroll growth of 110,000 for August, up from 73,000 in July.
Fed Says It Will ‘Abide by Any Court Decision’ on Cook Firing
The Federal Reserve announced Tuesday that it will “abide by any court decision” regarding President Donald Trump’s attempt to remove Fed Governor Lisa Cook from the central bank’s board.
“Cook has indicated through her attorney that she will promptly challenge this action in court, seeking a judicial ruling to confirm her ability to continue serving as a Senate-confirmed member of the Board of Governors,” a Fed spokesperson said. “As always, the Federal Reserve will abide by any court decision.”
Top Gainers
Several stocks experienced significant gains. Some of the top gainers included:
EchoStar Corp. (SATS) +70.25%
Semtech Corp. (SMTC) +15.14%
Hesai Group (HSAI) +14.07%
Centrus Energy (LEU) +12.62%
Energy Fuels, Inc. (UUUU) +12.63%
Top Losers
The top US stock losers today, based on percentage change included:
Newegg Commerce (NEGG) -21.14%
Keurig Dr Pepper (KDP) -6.91%
Six Flags Entertainment (FUN) -5.81%
BW LPG Limited (BWLP) -5.57%
Crescent Energy (CRGY) -5.45%
Notables
- In a Tuesday note, Baird stood by its neutral rating on shares of Tesla (TSLA). The investment firm’s $320 price target implies a potential 8% downside ahead for the stock.
- Bank of America analyst Peter Galbo downgraded Constellation Brands to underperform from neutral on Tuesday, sending shares down about 3% in afternoon trading. He also cut his price target from $182 to $150, implying a potential decline of nearly 8.4% from the stock’s most recent close.
- Semtech surged 17% after reporting stronger-than-expected second-quarter results and upbeat guidance for Q3. The company posted adjusted earnings of 41 cents per share on revenue of $27.6 million, surpassing analysts’ expectations of 40 cents per share on $256.1 million in revenue. Semtech expects third-quarter revenue of $266 million.
- Cracker Barrel Old Country Store shares jumped 4.5%, recovering after seven consecutive days of losses tied to backlash over its new logo and rebranding. President Donald Trump weighed in on Tuesday, suggesting the restaurant return to its original logo.
- Paramount Skydance fell 4%, giving back part of its sharp gains for the month. Paramount shares are still up 21% in August.
What to Watch Ahead
Investors remain optimistic about the potential for lower interest rates in September, following Powell’s recent comments in Jackson Hole, Wyoming. Attention is also turning to Nvidia’s earnings report on Wednesday, which could boost the megacap tech sector after a recent slide. The “Magnificent Seven” stocks rebounded Friday following five consecutive days of losses.
“In the immediate term, markets will likely move past the Cook news fairly quickly—assuming this is an isolated event and Trump does not attempt to fire Powell—and refocus on Nvidia, the PCE, and jobs. But the Fed’s independence is undeniably being undermined, a process with negative long-term consequences,” said Adam Crisafulli, founder of Vital Knowledge.
Investor sentiment was also influenced by Trump’s Monday announcement of potential new tariffs and export restrictions on chips for countries that maintain digital taxes.
Despite these pressures, anticipation for Nvidia’s earnings helped support markets. Ameriprise Chief Market Strategist Anthony Saglimbene expects the results to be strong.
“It all comes down to execution,” Saglimbene told CNBC. “How Nvidia delivers on currently elevated expectations—whether it guides higher or exceeds market forecasts—will influence how the market reacts.”
Shares of the AI chip leader were up about 1% Tuesday, extending gains from the previous two sessions.
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