In an unprecedented move, President Donald Trump announced last night that he was firing Federal Reserve Governor Lisa Cook, citing unproven allegations by Federal Housing Finance Agency Director Bill Pulte that she had made false statements on applications for home mortgages. Cook, confirmed in 2022, swiftly rejected the dismissal, and denied the allegations, stating that Trump lacks the legal authority to remove her and vowing to continue her duties.

This firing has escalated Trump's ongoing feud with the central bank, where he has repeatedly pushed for faster interest rate cuts to stimulate the economy. While the outcome is uncertain, the announcement is weighing on U.S. equities this morning, albeit only slightly. The Fed’s independence has been in the crosshairs as the current administration continues to push for lower rates.

While the news has dented the bull market run from April lows, the resiliency and optimism for U.S. stocks remains in place. The U.S. stock market has shown remarkable resilience in 2025, navigating a landscape marked by political turbulence, fluctuating inflation, and global economic headwinds.

The market's ability to absorb shocks, supported by strong corporate earnings, a robust labor market, and optimism around potential Federal Reserve rate cuts underscores the appetite for risk assets. The benchmark S&P 500 (SPX) is only 0.6% off of its all-time high as of Monday’s closing price. The unemployment rate sits at 4.2%, which is considered full employment, and earnings this quarter are above expectations – lending support for stocks.

August has historically been a volatile month for equities, with average S&P 500 returns dipping slightly, testing investor optimism. Yet, positive trade policy outlooks and better-than-expected earnings have propelled domestic stocks higher for the three previous months.

Investor focus today will be on economic data with reports due on Durable Goods Orders, home prices and Consumer Confidence. Durable Goods Orders are expected to show a decrease of 4% on the month with aircraft orders the swing factor for another month. The consensus sees an increase of 0.1% ex-transportation orders. Core capital goods orders, the capex proxy, is seen up by a decent 0.3%.

The consensus for Consumer Confidence looks for a downtick to 96.4 in August from 97.2 in July. The Conference Board’s measure has stabilized after taking a tumble earlier in the year, but confidence remains relatively depressed as consumers are uneasy about cracks in the job market and inflation starting to rise again.

All of this comes ahead Nvidia (NVDA) earnings, which are due out Wednesday afternoon. Nvidia is a major component in the S&P 500 (SPX), the Nasdaq-100 (NDX) and Dow Industrial Index ($DJI) so it has the potential to set the tone for market direction this week. While the noise in financial markets continue to rattle the outlook for the economy, the equity market remains resilient and investors continue to favor stocks.

Markets could see more volatility over the next few weeks – but does it have any negative impact in store for stocks? So far it hasn’t but things can change quickly, even in a resilient market.

Tune in live from 8 a.m. to 5 p.m. ET, or anytime, anywhere, on‑demand.

Or stream it via thinkorswim® and thinkorswim Mobile, available through our broker-dealer affiliate, Charles Schwab & Co., Inc

Please do not reply to this email. Replies are not delivered to Schwab Network. For inquiries or comments, please email [email protected].

See how your information is protected with our privacy statement. 

Charles Schwab and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions. Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a wholly owned subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, or futures commission merchant.