The three major stock indices on the New York Stock Exchange closed slightly higher.
U.S. President Donald Trump attempted to dismiss Federal Reserve Board (Fed) Governor Lisa Cook, amid indications from Cook that she would engage in legal battles, leading to a decline in investor concerns over the Fed's independence.
On the 26th (local time), the Dow Jones Industrial Average closed at 40,418.07, up 135.60 points (0.30%) from the previous trading day. The Standard & Poor's 500 index rose by 26.62 points (0.41%) to 6,465.95, while the tech-heavy Nasdaq index soared 94.98 points (0.44%) to close at 21,544.27.
Following a cabinet meeting, President Trump noted to reporters regarding Cook that he had sent a notice of dismissal, stating, "I am considering a great person to succeed Cook," revealing his intent to dominate the Fed. Cook is facing allegations of fraud in obtaining a mortgage, but no formal investigation has yet been conducted.
Cook immediately indicated that there is "no legal basis" for the dismissal and that Trump lacks such authority, suggesting a legal response. As a result, optimism has spread that Trump's attempts to dominate the Fed may slow down, leading to a slight easing of previously dampened investor sentiment.
By sector, industrials rose by more than 1%, while other sectors remained stable.
Among tech giants with a market capitalization of over $1 trillion, Nvidia, Broadcom, and Tesla each rose by more than 1%.
U.S. semiconductor manufacturer AMD rose by 2% due to a target price adjustment by financial institution Truist.
JPMorgan also rose by more than 1%, solidifying its market capitalization at around $800 billion.
Meanwhile, the market is turning its attention to Nvidia's second-quarter results, which will be announced after the market closes on the 27th. As discussions of a bubble surrounding the artificial intelligence (AI) industry have spread, Nvidia's performance is expected to serve as a bellwether.
Anthony Saglimbene, chief market strategist at Ameriprise, forecasted that, "How Nvidia can meet and execute its current high expectations, and whether it can elevate those expectations further, will impact the market."