By Christmas Randewich
(Reuters) – The New York Stock Exchange ended up on Tuesday, despite the concern about the independence of the American Federal Reserve (Fed) after the decision made by President Donald Trump to dismiss Lisa Cook, governor of the institution.
The Dow Jones index won 0.30%, or 135.60 points, at 45,418.07 points. The larger Standard & Poor’s 500 took 26.62 points, 0.41% at 6,465.94 points. The Nasdaq Composite advanced on its side of 94.98 points, or 0.44% to 21,544.27 points.
The S&P 500 was notably carried by the performance of Nvidia, which advanced on the eve of the publication of its quarterly results.
Donald Trump said on Monday to remove Lisa Cook from his post, citing alleged irregularities in obtaining real estate loans, an unprecedented decision likely to move the lines with regard to the independence available to the institution.
Lisa Cook, the first African-American woman to sit on the Council of Fed governors, said that Donald Trump did not have the power to dismiss her and undertake to stay at his post.
“The community of financial markets is increasingly concerned about independence (FED). It is a real long-term concern. However, in the short term, what does this change in the trajectory of interest rate policy in the next six or 12 months?” Said Bill Merz Director of market research at US Bank Wealth Management, in Minneapolis.
Despite the inflationary pressures, the traders consider a decrease of 25 basic points of the Fed rates in September.
At the values, Eli Lilly jumped after announcing the success of one of his experimental pills to help overweight adults with type 2 diabetes to lose weight.
Advanced Micro Devices advanced after Truist Securities noted its recommendation to “buy” to “keep”.
Echostar, for its part, reached a record after AT & T said it had concluded an agreement for the purchase of certain spectrum licenses from the telecommunications services company for around 23 billion dollars.
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(With Johann M Cherian and Sanchayaita Roy in Bangalore; Camille Raynaud)
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