U.S. markets ended the day in negative territory as political pressure on the Federal Reserve combined with anticipation over Nvidia’s earnings to create fresh uncertainty for investors. The sell-off followed President Trump’s decision to remove Fed Governor Lisa Cook from her post, citing unproven allegations, a move that rattled confidence in the central bank’s independence. Analysts warned that politicizing the Fed could erode its credibility and make future monetary policy decisions less predictable.
The impact was visible in the bond market, where short-term Treasury yields fell on expectations of a more dovish central bank, while longer-dated yields climbed on fears of rising inflation risks. The dollar weakened against major currencies, further signaling unease.
On Wall Street, tech stocks were mixed as traders looked ahead to Nvidia’s quarterly earnings. The chipmaker has become a bellwether for the artificial intelligence boom, and its results are widely seen as a potential catalyst for the next big market swing. Investors are betting that strong numbers could justify the sector’s lofty valuations, but concerns remain that any disappointment could trigger a sharp pullback.
The day’s trading reflects the fragile balance currently driving market sentiment. Political moves in Washington are colliding with hopes for continued growth in technology, leaving investors uncertain about which direction will dominate in the months ahead. For now, caution remains the watchword as Wall Street navigates an environment shaped as much by politics as by profits.
