Trump Moves to Oust Fed Governor Lisa Cook

Risk sentiment wavered as Fed independence fears resurfaced; Nvidia beat but China exposure weighed, and new U.S. tariffs on India stirred trade jitters.

TL;DR:

• 🏦 Trump moves to oust Fed governor
• 🤖 Nvidia beats; China risks hit shares
• 🚢 U.S. slaps 25% tariffs on India
• 📊 GDP and jobless claims due

Trump Attempts to Dismiss Fed Governor Lisa Cook

President Donald Trump sought to remove Federal Reserve Governor Lisa Cook, a move likely to face legal challenges and reignite concerns about central bank independence. Markets leaned risk-off on the headline, with rate-sensitive assets in focus as investors assessed whether governance pressure could skew policy signaling or the rate path. The episode added another layer of event risk to an already data-heavy week. Source

Nvidia Earnings Beat, But China Concerns Pressure Stock

Nvidia reported $46.7 billion in quarterly revenue, up 56% year over year and slightly ahead of expectations, but shares slipped about 3% after hours on lingering uncertainty around its China business amid export controls. The print reinforces robust AI demand, yet headline risk around geopolitics and licensing remains a valuation overhang. Traders focused on guidance quality, data center backlog, and any commentary on alternative markets to offset China softness. Source

U.S. Imposes 25% Tariffs on Indian Imports

The U.S. implemented an additional 25% tariff on Indian imports starting August 27, effectively lifting many lines to a 50% rate. The escalation introduces new friction in global supply chains, with potential pass-through effects for prices and corporate margins in exposed categories. Investors monitored rupee sensitivity, U.S. retail importers, and multinationals with India-centric sourcing for near-term volatility. Source

U.S. GDP Second Estimate and Jobless Claims on Deck

Today’s second estimate of Q2 GDP and weekly jobless claims will refine the growth and labor narrative heading into the next Fed decision. Short-end yields, the dollar, and equity index futures are poised to react to any surprise in growth momentum or claims trend, while traders also eye the upcoming PCE inflation print later this week; Gulf markets have already softened ahead of the data. Watch sensitivity in cyclical sectors, high-duration tech, and USD-correlated EM. Source Source