The stock market was working to recoup its overnight losses, which followed President Donald Trump’s announcement that he was firing Federal Reserve Governor Lisa Cook, according to the Associated Press.
Futures for the S&P 500, Dow Jones Industrial Average and Nasdaq all ticked down roughly 0.1% before Tuesday’s bell. All indexes had slipped substantially lower Monday when Trump said in a post that he was removing Cook due to allegations of mortgage fraud by his appointee that heads the agency regulating mortgage giants Fannie Mae and Freddie Mac.
The unprecedented action signals a sharp escalation in Trump’s bid to increase control over what has long been considered an institution independent from day-to-day politics. It has the potential to shake markets and set off an extensive legal battle that may go to the Supreme Court.
In the meantime, Wall Street is still largely betting that the Fed will cut interest rates in September. Traders see an 84% change that the central bank will trim its benchmark rate by a quarter of a percentage point.
Benchmark U.S. crude dropped $1.09 to $63.71 per barrel. Oil prices are down 8% this month and nearly 14% since the beginning of the summer due to a combination of production increases by OPEC and the summer travel season winding down.
Brent crude, the international standard, declined $1.02 to $67.20 per barrel.
