Wall Street Advances as Health Care, Tech Shares Gain
Consumer confidence fell to 97.4 in August, down from a revised 98.7 in July, but the drop was smaller than the expected 96.4.
Quick overview
- Wall Street closed higher on August 26, with the Dow Jones Industrial Average reaching a record high amid gains in health care and technology stocks.
- The Dow rose 0.30% to 45,418.07, while the S&P 500 and Nasdaq Composite both gained 0.40%.
- President Trump dismissed Fed Governor Lisa Cook, raising concerns about the Federal Reserve's independence.
- Economic data showed mixed results, with consumer confidence falling but core capital goods orders rising.
Wall Street closed higher on Tuesday, August 26, with the Dow Jones Industrial Average hitting a record high, as gains in health care and technology stocks offset concerns about the independence of the Federal Reserve following President Donald Trump’s dismissal of Fed Governor Lisa Cook.
The Dow Jones Industrial Average rose 0.30% to 45,418.07, the S&P 500 gained 0.40% to 6,465.38, and the Nasdaq Composite advanced 0.40% to 21,544.27.
Fed Independence in the Spotlight
Trump announced Cook’s immediate removal in a letter posted to social media late Monday, citing mortgage fraud allegations brought earlier this month by William Pulte, head of the Federal Housing Finance Agency.
Cook, a member of the Fed’s seven-person board that sets interest rates, rejected the claims and said she would not be intimidated into stepping down.
The move has raised fresh concerns over the central bank’s independence, which traditionally operates outside the political sphere. Earlier this year, Trump also sought to oust Fed Chair Jerome Powell, who resisted pressure to deliver immediate rate cuts.
Economic Data Surprises
Economic releases on Tuesday offered a mixed picture:
- Consumer confidence fell to 97.4 in August, down from a revised 98.7 in July, but the drop was smaller than the expected 96.4.
- Core capital goods orders—non-defense orders excluding aircraft, a key gauge of business spending—rose 1.1% in July after a revised 0.6% decline in June, pointing to solid equipment investment early in Q3.
- Durable goods orders, however, fell 2.8%, dragged down by a sharp drop in commercial aircraft bookings.
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