Markets slipped with Dow futures down 49 points, the S&P 500 down about seven, and the Nasdaq down about 34 points. Most of the downside followed President Trump's removal of Federal Reserve Governor Lisa Cook. Cook and her attorney said they will challenge the termination and argued Trump lacked authority to fire her "for cause." Adam Crisafulli said markets may quickly move past the news if discrete, but that the Fed's independence is being undermined with negative long-term consequences. Nvidia, the most valuable S&P 500 stock, will report earnings after the bell tomorrow with analysts expecting EPS of $1.01 on $46.13 billion in revenue. Wedbush cited Asia field checks showing demand to supply 10:1 for Nvidia chips. Baird raised NVDA price targets on GB200 shipment growth. Truist upgraded AMD to buy with a $213 target.
"President Trump purported to fire me 'for cause' when no cause exists under the law, and he has no authority to do so," Cook said in a statement, as quoted by CNBC.
"In the immediate term, markets will probably get over the Cook news fairly quickly (assuming this is a discrete event and Trump doesn't attempt to fire Powell), turning its attention back to Nvidia, the PCE, and jobs, but the Fed's independence is undeniably being undermined, a process with negative long-term consequences," said Adam Crisafulli, founder of Vital Knowledge," as also quoted by CNBC.
"When Nvidia reports earnings this week on Wednesday after the bell, the tech world and Wall Street will be listening closely to every word from Jensen as we continue to believe from our Asia field checks that demand to supply is 10:1 for Nvidia's golden chips."
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