Friday was a Power Power Hour. Monday evening was a Trump Jumpscare. The President of the United States spared after hours for two Truth Social posts: one threatening action against foreign countries that attempt to levy taxes, legislation, or regulations on American tech. And another, arguably more concerning, indicating that he "removed" Fed Governor Lisa Cook. The reaction to the latter was particularly testy, as markets gyrated.
But Cook said she isn't leaving, setting up a fantastic boss battle between the President and the Central Bank. There has been some atoning today on Wall Street, where futures have recovered as investors digest what's next. The Russell 2000 (+0.65%) is still standing high and mighty, while the Nasdaq (+0.15%) has added to its modest gains. Meanwhile, the S&P 500 (+0.01%) and the Dow (-0.13%) have not come along with.
Tuesday Reading
Still, Gold (+0.27%) is up, a sign that investors are the hedging against trial or tribulation. In support of that risk-off attitude, the 30Y Treasury yield (up 0.035%) is also on the rise, while the U.S. Dollar Index (-0.26%) is declining.
Thankfully, economic data has been relatively promising, all things considered. The Conference Board's Consumer Confidence index saw a small decline, but nothing too notable. Prelim Durable Orders, Richmond Fed Manufacturing Index, and Dallas Fed Services Index all improved on a sequential basis. That's a small consolation despite the uncertainty we're seeing.
-- Noah Weidner, markets reporter
