Wall Street Subdued After Trump’s Latest Attack on Fed/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks opened flat Tuesday, with major indexes hovering just under record highs as investors weighed corporate news and ongoing tensions between President Donald Trump and the Federal Reserve. Boeing and EchoStar surged on major deals, while broader markets showed caution. Traders still expect a September Fed rate cut despite political uncertainty.
Wall Street Market Quick Looks
- S&P 500: Mostly unchanged Tuesday morning, near record highs
- Dow Jones: Up 21 points (0.1%) at 9:55 a.m. ET
- Nasdaq Composite: Flat in early trading
- Boeing rose 1.6% after Korean Air announced $50 billion deal for 100+ aircraft
- EchoStar surged 80% after AT&T agreed to buy $23 billion in wireless spectrum licenses
- Treasury yields little changed: 10-year at 4.28%, two-year slipped to 3.69%
- Crude oil prices fell, pressuring energy sector stocks
- European markets mostly lower; Asian markets closed down overnight
- Political spotlight: Trump announced firing of Fed Governor Lisa Cook, sparking uncertainty
- Fed expected to cut rates in September, with traders betting 86% odds
Deep Look: Wall Street Flat as Fed Drama and Trade Tensions Loom
NEW YORK — August 26, 2025 – Wall Street showed restraint Tuesday, with major indexes hovering just below record highs despite surging individual stocks like Boeing and EchoStar.
The S&P 500 was flat, reflecting cautious investor sentiment. The Dow Jones Industrial Average edged up 21 points, or 0.1%, while the Nasdaq Composite also traded mostly unchanged.
Markets appear to be in a holding pattern as traders await clarity on the Federal Reserve’s next policy moves and the latest developments in President Donald Trump’s escalating conflict with the central bank.
Big Movers: Boeing and EchoStar
The morning’s standout performers came from two companies riding major deal announcements.
- Boeing gained 1.6% after Korean Air unveiled a $50 billion agreement to purchase more than 100 aircraft. The deal provides a much-needed boost to the aerospace giant as it works to rebuild its reputation and stabilize deliveries following years of safety and production challenges.
- EchoStar, the parent company of Dish TV, skyrocketed 80% after AT&T said it will purchase some of its wireless spectrum licenses for $23 billion. The acquisition signals AT&T’s determination to expand capacity in the increasingly competitive wireless market.
These corporate headlines provided a lift to select stocks but did little to shift the broader market mood.
Fed Conflict Clouds Market Outlook
Markets remained cautious as attention focused on Washington. On Monday, President Donald Trump announced he was removing Federal Reserve Governor Lisa Cook, a move she quickly rejected, saying the president had “no authority” to fire her.
The unprecedented move highlights Trump’s deepening conflict with the central bank, which has resisted political pressure to slash interest rates quickly. The Fed has kept its benchmark rate steady since late 2024, citing concerns that Trump’s broad tariff policies could reignite inflation.
Trump has also threatened to dismiss Fed Chair Jerome Powell, creating further uncertainty about the future of U.S. monetary policy.
Traders Still Betting on September Rate Cut
Despite the political turbulence, Wall Street continues to price in a rate cut at the Fed’s next meeting on September 16–17. According to CME Group data, traders see an 86% chance the central bank will lower rates by a quarter percentage point.
The bond market reflected this sentiment. The 10-year Treasury yield held steady at 4.28%, while the two-year yield, which more closely tracks expectations for Fed policy, slipped to 3.69% from 3.73% late Friday.
Lower yields typically signal investor confidence in rate cuts but also caution about economic growth.
Other Market Drivers
- Crude oil prices fell, putting pressure on energy stocks and signaling concerns over global demand.
- European markets traded mostly lower amid caution ahead of the European Central Bank’s own policy meeting.
- Asian markets closed down overnight, with investors reacting to weaker Chinese economic data and ongoing tariff disputes with the U.S.
What’s Next for Wall Street
For now, markets remain balanced between optimism from corporate deals and anxiety over political risks. While Boeing and EchoStar offered bullish stories, broader indexes stayed tethered near recent records, with investors waiting for clear signs on:
- Whether Trump’s attempt to fire a Fed governor will be upheld or blocked in court.
- If the Federal Reserve follows through with the widely expected September rate cut.
- How ongoing tariff battles could impact inflation, consumer prices, and corporate profits.
With job reports and inflation data due in September, analysts say Wall Street may stay subdued until fresh numbers confirm whether the U.S. economy is still resilient or edging toward slowdown.
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