US close: Stocks rise but Fed uncertainty limits upside
By Benjamin Chiou
Date: Tuesday 26 Aug 2025
(Sharecast News) - US stock markets finished with small gains on Tuesday after a late rally, though disappointing economic data and renewed concerns about the independence of the Federal Reserve limited upside.
After a flat start, the Dow closed 0.3% higher, while the S&P 500 and Nasdaq both gained 0.4%.
Donald Trump's reported effort to remove Fed governor Lisa Cook - due to unproven accusations of mortgage fraud - reignited concerns over the government's influence on central bank operations, despite experts warning that the move could face a legal challenge in the courts. Under existing statute, Fed governors may only be dismissed "for cause".
The Fed board currently comprises six members, following the resignation of Adriana Kugler earlier in August, and if Cook is removed, the board would shrink to five, though non-Trump appointees would retain a majority. That influence could deepen further if chairman Jerome Powell steps down when his term ends in May, potentially handing the president a fifth vote.
"Donald Trump has been blunt when it comes to what he thinks of US central bank policy decisions, but up until today it's been mostly talk," saysAJ Bell head of financial analysis Danni Hewson.
"His decision to fire Lisa Cook, even if it is ultimately overturned by the courts, feels like a new chapter in this political thriller which really turns the heat up on simmering worries about the Fed's future independence."
Economic data weakens
On the macro front, US durable goods orders fell by 2.8% in July to $302.8bn, according to the Census Bureau, extending June's revised 9.4% decline - though slightly less than expectations for a steeper 4% drop. July's reading comes amid an extended period of softer orders after US firms front-loaded imports in May as part of an effort to avoid paying the White House's aggressive tariffs.
US house price inflation slowed to its lowest level in two years in June, with the closely watched S&P Cotality Case-Shiller 20-city composite index rising just 2.1% year-on-year in June, down from the 2.8% increase registered in June. The growth rate was slightly below the 2.2% expected by economists.
The Conference Board's US consumer confidence index fell by 1.3 points in August to 97.4, reversing July's upwardly revised print, with the present situation index dropping by 1.6 points to 131.2, and the expectations index slipping 1.2 points to 74.8 - below the 80 threshold typically associated with recession risk.
Market movers
Caterpillar fell after Norway's sovereign wealth fund, Norges Bank Investment Management, revealed it is selling off shares in in the heavy machinery company, citing evidence that some of its equipment was being used to destroy buildings in Gaza.
American telecoms giant AT&T was slightly lower after paying $23bn for certain wireless spectrum licenses from Nasdaq-listed EchoStar, causing shares in the latter to rocket 70%. AT&T said the acquired licences cover "virtually every market across the US" - over 400 in total - with deployment will begin "as soon as possible".
Pharma group Eli Lilly put in decent gains after positive results from a trial of its weight-loss drug orforglipron.
Dow Jones - Risers
Cisco Systems Inc. (CSCO) $68.39 1.86%
Boeing Co. (BA) $234.05 1.55%
Apple Inc. (AAPL) $229.31 0.95%
Amgen Inc. (AMGN) $289.58 0.38%
JP Morgan Chase & Co. (JPM) $297.17 0.38%
Nike Inc. (NKE) $78.55 0.27%
Goldman Sachs Group Inc. (GS) $742.43 0.14%
American Express Co. (AXP) $319.35 0.03%
Dow Jones - Fallers
Merck & Co. Inc. (MRK) $85.13 -2.57%
Travelers Company Inc. (TRV) $270.60 -1.99%
Coca-Cola Co. (KO) $68.87 -1.86%
3M Co. (MMM) $155.86 -1.86%
Procter & Gamble Co. (PG) $155.80 -1.80%
Home Depot Inc. (HD) $405.87 -1.69%
Salesforce.Com Inc. (CRM) $244.08 -1.63%
Caterpillar Inc. (CAT) $428.78 -1.53%
Johnson & Johnson (JNJ) $176.57 -1.49%
Walt Disney Co. (DIS) $117.50 -1.17%
S&P 500 - Risers
Nektar Therapeutics (NKTR) $28.78 6.04%
VF Corp. (VFC) $14.52 5.80%
Advance Auto Parts (AAP) $60.24 4.46%
PVH Corp. (PVH) $82.43 3.29%
Synchrony Financial (SYF) $75.36 2.75%
Wells Fargo & Co. (WFC) $81.21 2.69%
Regeneron Pharmaceuticals Inc. (REGN) $587.65 2.67%
Eli Lilly and Company (LLY) $727.84 2.46%
Bread Financial Holdings, Inc. (BFH) $63.91 2.38%
Corning Inc. (GLW) $67.33 2.36%
S&P 500 - Fallers
Coty Inc. Class A (COTY) $3.70 -5.98%
Constellation Brands Inc. Class A (STZ) $159.29 -5.00%
Brown Forman Corp. Class B (BF.B) $29.86 -4.46%
Molson Coors Beverage Co. Class B (TAP) $50.51 -4.41%
ConAgra Brands Inc (CAG) $18.85 -4.15%
eBay Inc. (EBAY) $94.64 -3.97%
Eversource Energy (ES) $63.95 -3.85%
Dominion Energy Inc. (D) $59.68 -3.51%
Pfizer Inc. (PFE) $24.97 -3.50%
Robert Half Inc. (RHI) $36.67 -3.40%
Nasdaq 100 - Risers
Regeneron Pharmaceuticals Inc. (REGN) $587.65 2.67%
Lam Research Corp. (LRCX) $103.63 2.32%
Qvc Group Inc Series A (QVCGA) $4.92 1.86%
Cisco Systems Inc. (CSCO) $68.39 1.86%
QUALCOMM Inc. (QCOM) $159.17 1.76%
Applied Materials Inc. (AMAT) $164.55 1.58%
Tesla Inc (TSLA) $351.79 1.50%
Broadcom Inc. (AVGO) $298.01 1.28%
Intuitive Surgical Inc. (ISRG) $474.26 1.24%
Asml Holdings N.V. (ASML) $763.20 1.16%
Nasdaq 100 - Fallers
eBay Inc. (EBAY) $94.64 -3.97%
Charter Communications Inc. (CHTR) $266.67 -2.48%
Adobe Systems Inc. (ADBE) $354.91 -2.29%
Align Technology Inc. (ALGN) $141.78 -2.19%
Biomarin Pharmaceutical Inc. (BMRN) $57.45 -1.79%
Trip.com Group Limited (TCOM) $64.93 -1.52%
Fiserv Inc. (FI) $137.62 -1.46%
Skyworks Solutions Inc. (SWKS) $75.67 -1.42%
Microchip Technology Inc. (MCHP) $67.62 -1.36%
CSX Corp. (CSX) $32.41 -1.22%
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