Yesterday, the U.S. stock market continued to rise despite political turmoil surrounding President Donald Trump's conflict with the Federal Reserve. Investors turned attention to upcoming corporate earnings.
S&P 500 and Other Indexes
The S&P 500 rose by 0.41%, closing at 6,465.94. The Nasdaq Composite climbed 0.44%, reaching 21,544.27, while the Dow Jones added 135.60 points, finishing at 45,418.07.
Betting on Lower Volatility
Despite the political noise, traders are betting on diminishing volatility. Net short positions in VIX futures reached 92,786 contracts, the highest since September 2022.
Market Reaction to Cook's Firing
Trump's firing of Fed Chair Janet Cook caught investors' attention. Some experts noted that the president's actions are reminiscent of Richard Nixon's strategies in 1972. Investors remain concerned about potential loss of independence for the Federal Reserve.
Overall, the market displayed growth despite political instability and firings within the Fed. However, economists warn of potential risks associated with lost confidence in the independence of the Federal Reserve.
