Trump Fires Fed Governor Lisa Cook

Global markets slid after an unprecedented shake-up at the Fed. Traders rotated to safe havens while eyeing Nvidia earnings and a Japan-U.S. investment update.

TL;DR:

🏛️ Trump fires Fed Governor Cook
💵 Dollar weakens, yields fall, gold rises
🤖 Nvidia earnings to test AI confidence
🇯🇵 Japan’s $550B U.S. plan update

Trump Fires Fed Governor Lisa Cook

President Donald Trump dismissed Federal Reserve Governor Lisa Cook, alleging mortgage fraud—an extraordinary action that amplified concerns over central bank independence and jolted risk assets globally. Equities sold off across regions as investors reassessed policy credibility, liquidity risk, and recession odds amid political interference headlines. Source

Dollar Weakens, Yields Fall, Gold Rises

In the wake of the dismissal, the dollar softened while longer-dated U.S. Treasury yields declined, signaling a flight to duration and policy uncertainty hedging. Gold caught a bid as investors sought safety, and cross-asset volatility firmed with defensives outperforming cyclicals. Source

Nvidia Earnings To Test AI Confidence

Nvidia’s results are the next major catalyst, with investors treating the print as a referendum on the durability of the AI capex cycle and hyperscaler demand. Any guidance shift on supply, backlog, or data-center mix could ripple through semis, megacap tech, and broader risk sentiment. Source

Japan’s $550B U.S. Investment Update

Commerce Secretary Howard Lutnick said details on Japan’s proposed $550B investment package into the U.S. will arrive this week, with focus areas likely including semiconductors and critical minerals. The scope and timeline could have implications for chip supply chains, industrial policy plays, and upstream miners. Source