Updated 2 min read
US stocks wavered Tuesday as Wall Street absorbed President Trump’s bid to remove Federal Reserve governor Lisa Cook and his fresh threat to impose digital tax-related tariffs.
The Dow Jones Industrial Average (^DJI) fell below the flat line, while the S&P 500 (^GSPC) climbed nearly 0.1%. The tech-heavy Nasdaq Composite (^IXIC) rose 0.2%. The mixed performance among the major gauges follows a pullback in stocks Monday after a record-setting rally at the end of last week.
Investors are treading carefully after Trump took to social media to ramp up pressure in his Fed feud and in his trade offensive.
The president said late Monday that he had determined there was “sufficient cause” to oust Cook, after the top Fed official resisted persistent demands for her resignation over allegations of mortgage fraud. Cook responded by saying Trump didn’t have the authority to fire her and that she wouldn’t step down.
Longer-dated US bond prices fell amid concerns that Trump’s moves against Fed independence as he pushed for interest rate cuts could stoke inflation. The yields on 10-year (^TNX) and 30-year (^TYX) Treasurys rose to about 4.3% and 4.9%, respectively.
On the trade front, Trump vowed to impose fresh tariffs and export curbs on chips and technology from countries that “unfairly” placed taxes on US digital services, speaking in a Monday social media post. The reprisal risks escalating trade tensions between the US and the European Union, which defended its use of the measures on Tuesday.
Read more: The latest on Trump’s tariffs
Meanwhile, Wall Street is bracing for Nvidia (NVDA) earnings, which land Wednesday after the bell. Expectations for its results are sky-high, with the company’s stock up almost 34% so far this year, even as restrictions on chip sales to China have possibly cost the company billions.
LIVE 13 updates
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Trump Media stock jumps after announcing plans to launch crypto treasury firm
Shares of Trump Media & Technology Group (DJT) climbed nearly 5% after the company, in which President Trump is a majority stakeholder, said it’s partnering with Crypto.com to launch a new crypto treasury firm.
The new company, called Trump Media Group CRO Strategy, will accumulate Crypto.com’s own cryptocurrency, Cronos.
The announcement follows Trump Media’s move in May to launch a bitcoin treasury, following the trend of companies across various sectors adding bitcoin to their balance sheets to try to replicate the success of crypto advocate Michael Saylor’s company Strategy (MSTR).
The latest news adds to Trump’s rapidly expanding crypto empire, just as the president ushers in regulations to cement digital tokens as legitimate currencies.
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AMD stock jumps as Truist upgrades to Buy, chipmaker announces quantum computing partnership with IBM
Shares of Advanced Micro Devices (AMD) climbed nearly 2% after the company announced a new partnership with IBM (IBM).
The companies said they’re developing a “hybrid” model of computing combining IBM’s quantum computers with AMD’s AI chips.
IBM in June said it is building the world’s first large-scale quantum computer capable of operating without errors, set to launch by 2029.
“As we partner with IBM to explore the convergence of high-performance computing and quantum technologies, we see tremendous opportunities to accelerate discovery and innovation,” AMD CEO Lisa Su saidin a statement.
Also boosting AMD stock, Truist Securities analyst William Stein upgraded his rating on shares to Buy from Hold. Stein said that, while he saw AMD’s AI chips initially only being used as a “price check” to Nvidia, now “hyperscalers are working with AMD in a partnership manner, expressing true interest in deploying AMD at scale.”
Stein said that AMD’s gain on Intel in the CPU market (central processing units, or traditional computer chips) could provide a model for AMD gaining on Nvidia in the GPU (graphics processing units, or AI chips) market.
Stein raised his price target on the stock to $213 from $173.
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GoPro drops after meme stock jumped 36% Monday
GoPro (GPRO) shares fell as much as 4.5% Tuesday, before paring losses, after surging 36% during the prior trading session.
GoPro is one of a group of the latest meme stocks including OpenDoor (OPEN), Krispy Kreme (DNUT) and Kohl’s (KSS) that have emerged this summer.
Shares of the mountable camera maker are up 50% for the year. Meanwhile, OpenDoor stock is up roughly 105% in 2025, climbing 14% Tuesday.
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Stocks muted at the open
US stocks wavered at the open Tuesday as Wall Street watched President Trump’s moves to oust Fed governor Lisa Cook and his fresh tariff threats.
The Dow Jones Industrial Average (^DJI) edged down 0.1%, while the S&P 500 (^GSPC) was roughly flat. The tech-heavy Nasdaq Composite (^IXIC) hovered above the flat line.
Stocks continued to lag after Monday’s pullback followed a strong rally on Friday.
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Eli Lilly stock pops after weight-loss pill meets targets in diabetes trial
Shares of Eli Lilly (LLY) popped 3% Tuesday morning after the drugmaker announced its weight-loss pill met its goals during clinical testing, paving the way for it to submit the drug to the FDA and compete with rival Novo Nordisk (NVO) for dominance in the anti-obesity market.
The Financial Times reports:
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Defense stocks steady after Lutnick says Trump admin. is thinking about taking stakes in defense contractors
Defense stocks held steady after Commerce Secretary Howard Lutnick told CNBC’s Squawk Box on Tuesday that the Trump administration was thinking about taking stakes in top defense contractors after the US took a 9.9% stake in Intel (INTC).
When asked about the potential for the administration to strike other deals with US companies that do business with the government, Lutnick replied: “Oh, there’s a monstrous discussion about defense.”
“Lockheed Martin makes 97% of their revenue from the US government; they are basically an arm of the US government,” Lutnick said. “But what’s the economics of that? I’m going to leave that to my Secretary of Defense and the deputy Secretary of Defense. These guys are on it, and they’re thinking about it.”
Lockheed Martin (LMT) stock rose 0.4% in premarket trading.
RTX (RTX) shares also rose 0.4%, while L3Harris (LHX) gained 0.2%, and Northrop Grumman (NOC) was roughly flat. Meanwhile, shares of Palantir (PLTR) fell 0.9%.
Lutnick’s comments come after President Trump said Monday morning that he wanted to see “many more cases” like Intel.
“I will make deals like that for our Country all day long,” Trump said.
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EchoStar stock surges on $23 billion spectrum sale to AT&T
Shares of EchoStar (SATS) rocketed higher in premarket trading, up 65% as investors welcomed news the company has sold a tranche of wireless spectrum to AT&T (T) in a $23 billion deal.
“This transaction is part of EchoStar‘s ongoing efforts to resolve the Federal Communications Commission’s inquiries,” Dish TV owner EchoStar said in a statement on Tuesday.
In May, the FCC told EchoStar it was investigating its obligations to provide 5G wireless service in the US, with a focus on buildout extension and mobile-satellite service. The following month, President Trump urged the company to come to a deal with the FCC over spectrum licences, reports said.
The licenses cover more than 400 markets across the US in total and will strengthen AT&T’s low-band and mid-band spectrum holdings, the communications giant said, per Reuters.
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Treasury yields rise after President Trump moves to oust Fed’s Lisa Cook
Treasury yields rose, and the dollar fell on Tuesday after President Trump said late Monday he removed Federal Reserve Governor Lisa Cook from her post.
The 10-year yield (^TNX) ticked up 1 basis point to 4.27%, while the 30-year yield (^TYX) rose 2 basis points to 4.91%. The dollar index (DX-Y.NYB) fell 0.27%.
Yahoo Finance’s Allie Canal reports that Trump’s decision to follow through on a threat to oust Cook if she refused to resign comes after members of his administration alleged that Cook engaged in mortgage fraud related to the purchase of two properties earlier this decade.
“You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately,” the president wrote in a letter addressed to Cook and shared on social media. “I have determined there is sufficient cause to remove you from your position.”
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Nvidia in line for $260 billion price swing after earnings
Options traders are pricing in about a $260 billion swing in Nvidia’s (NVDA) market value following the chipmaker’s second-quarter earnings expected on Wednesday, market data has shown.
Reuters reports:
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Small caps are finally getting rate cuts, but they might still be left behind
Small-cap stocks are finally playing catch-up, leaving a market — which has been burned before — wondering if this time is for real, writes Yahoo Finance’s Hamza Shaban in today’s Morning Brief.
He reports:
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Good morning. Here’s what’s happening today.
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Premarket trending tickers: Wolfspeed, Interactive Brokers Group and Constellation Brands
Here’s a look at some of the top stocks trending in premarket trading:
Wolfspeed (WOLF) shares jumped more than 3% premarket after its fourth quarter results. The chipmaker, which has been grappling with a Chapter 11 and a restructuring, reported a loss per share $4.30, compared to a loss of $1.39 per share during the same period a year ago. Revenue came in at $197 million, compared to $201 million the previous year. Wall Street analysts expected worse results.
Interactive Brokers Group (IBKR) stock rose 3% before the bell on news it will be joining the S&P 500 (^GSPC) at the start of trading on Thursday, replacing Walgreens Boots Alliance.
Constellation Brands (STZ) stock fell over 1% premarket on Tuesday and was down more than 1% after dropping 2% Monday. RBC Capital cut its price target on the beer, wine and spirits company to $230 from $233, though it maintained an Outperform rating.
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Gold pushes up following Trump’s escalation of attack upon the Fed
Gold (GC=F) rose overnight Monday as news of President Trump’s announced intent to remove Federal Reserve Governor Lisa Cook from her position. With uncertainty around the legality of the move, or the broad impact upon markets, investors pushed up the haven asset as a safeguard against instability.
Bloomberg reports:
