Trump's Lisa Cook Decision Turns Heads But Has Little Impact on the Market

Drama surrounding the firing of Federal Reserve Governor Lisa Cook provided the media with a story to cover, but it had little impact on the stock market. There was some volatility in interest rates, but the great likelihood is that the Fed will be cutting rates in September regardless of whether Cook is still employed or not.

It was another thin trading session in the waning days of summer, but this time the action was more upbeat with positive breadth and outperformance by the Russell 2000 small-cap index IWM. The Magnificent Seven MAGS was lagging early in the day, but it was an intraday uptrend day with a solid close, which helped to boost sentiment.

Speculative interest picked up as the day progressed. Bitcoin IBIT found its footing and went red to green as bored traders decided to put a little capital to work.

Wednesday should offer a bit more excitement as investors position for earnings from Nvidia NVDA after the close. The stock is back within a few percentage points of its all-time highs, so expectations are high, but betting on a "sell the news" reaction to the AI leader is a risky wager.

While the action is slow, there is some good technical action in individual stocks. Stock pickers are finding some good charts, and they are working. EOS Energy EOSE, which I mentioned on Tuesday morning, was a good example.

The bears will need to find something other than Donald Trump’s obsession with the Fed if they are hoping to slow down this market. It is no secret that Trump wants a rate cut, and the debate over Fed independence isn’t doing anything to change the likelihood that the Fed will comply.

It is easy to find reasons why the market can’t keep running, but it is far more profitable to stick with the action while it is good.

Have a good evening. I’ll see you tomorrow.

At the time of publication, DePorre had no positions in any securities mentioned.