Monday’s session was doomed from the start, but buyers kicked the tires on mega-cap tech names, like Palantir Technologies (PLTR), which tumbled out of the gate to a session low of $149.37, before rallying to $157.17 at the close. But early buying wasn’t enough to lure fresh cash off the sidelines, so the effort faded, while the ‘Fear Gauge’ volatility (VIX) turned higher.

I’m not sure what happened around noon, but stock buyers gave up the ghost.

Sea of Red

Two sectors managed slim gains, but the S&P 500 (SPX) was a sea of red, as were most factors.

Market Breadth

There were more decliners than advancers, but market breadth wasn’t alarming. New highs dwarfed new lows, with volume remaining relatively even and very light.

Anxiety probably goes up another notch today, as we are one day away from the Nvidia (NVDA) earnings release. Say what you will about “Mag Seven,” these names are unlike any that have ever co-existed. They are innovation and earnings machines (+2,134% in ten years), while the other 493 earnings per share (EPS) have been stuck in the mud.

Big Changes at Federal Reserve

President Trump said he would fire Fed Governor Lisa Cook last Friday, which he did last night.

I do not believe Bill Pulte, director of Federal Housing Finance Agency, has made a mistake in flagging mortgage fraud, or the Justice Department would go after Cook without strong evidence and conviction.

It’s a shame.

Trump will be able to appoint another Fed official. I’m not sure how the Street will handle this. More than likely, the pundits who have hated everything from tariffs to immigration policy will call this the end of the world.

It’s not.

Today’s Session

The market continues to mark time ahead of Nvidia (NVDA) results, but also there is a lot of conversation and debate over Trump’s firing of Lisa Cook. I’m going to discuss this on Making Money today.  

The bottom line is several Fed officials were pushed out during Biden’s term and the organization was remade based on far-left ideology and the notion of social justice. The Federal Reserve has never been “independent” from ideology and will be nudged in one direction or another based on the party in office and opportunity.

That said, I think Cook is cooked, and I hope she bows out gracefully. But she worked for Kamala Harris and may string this along for political points. And everyone talks about the credibility of the Fed.

The economy is holding up, especially when one focuses on hard data.

Comments

I am not sure about all the background on Lisa Cook other than what I've read, but with the cloud over the Feb, at a minimum she should stay on the sidelines until more is known. I think most people would have resigned, but given the politics, I don't think that's likely, even if it' the right call. Mike Mayone on 8/26/2025 10:29:58 AM

If the independence of the Fed is as important as the left claims then Cook should resign or provide proof she is innocent. Jay collins on 8/26/2025 10:36:27 AM

The presumption of innocence must be preserved. The question is "When is evidence of a crime sufficient to warrant resignation." Perhaps that line is when someone in formally Indicted. Although we have witnessed a few recent cases where even that line of demarcation was too soon. P. Krueger on 8/26/2025 11:17:03 AM

NO....Innocent until proven otherwise Joey Gross on 8/26/2025 11:40:17 AM

yes Irene Stahl on 8/26/2025 1:28:39 PM

Sure would be more informative to see period to date ETF results (monthly and YTD)rather than just daily data. Thanks Mike Michael Straka on 8/26/2025 3:42:04 PM

Yes. It’s time to go. She needs to get out of the way. Lower rates on Fed Bank deposits as well as Fed fund rate need to be reduced. Michael Bennette on 8/26/2025 3:45:53 PM

The law is one cannot claim primary residence on multiple residential properties. Lisa D. Cook has, according to public records, claimed more than one residence as primary. These properties are in different states, Georgia is one state. As the democrats proclaim, “No one is above the law,” it would be absolutely appropriate for her to be removed from this position that she holds. Cynthia Miller on 8/27/2025 8:38:39 AM

Absolutely! Ron Bain on 8/27/2025 12:52:40 PM

No. People should not resign or be fired because of alleged impropriety, which has become a woke tradition in our society. If she is found guilty than she she should be terminated. David Dabrowski on 8/28/2025 6:08:03 AM

Can a manager fire and employee for theft from his store? No incitement is needed; they're fired. Ms. Cook was rightfully fired for malfeasance, and she has never denied her wrong doings. If an inditement is filed against her, then she can claim her innocents (innocent until proven guilty in a court-of-law). Michael W Thomann on 8/28/2025 10:28:58 AM

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