Trump/Cook, Nissan weakness, more tariffs and gold - what’s moving markets

Investing.com - U.S. stock futures slipped lower Tuesday as investors warily digested the decision of U.S. President Donald Trump to sack Fed Governor Lisa Cook, while safe-haven gold rose to two-week highs. Trump also indicated the possibility of more tariffs, potentially against the European Union and China, while Nissan stock suffered has Mercedes Benz started offloading its stake in the Japanese auto company.

1.Trump fires Fed’s Cook

President Donald Trump announced late Monday that he was firing Federal Reserve Governor Lisa Cook  over alleged improprieties in obtaining mortgage loans, his latest attack on the independence of the U.S. central bank.

Trump said in a letter to Cook, the first African-American woman to serve on the Federal Reserve’s governing body, that he had “sufficient cause to remove you from your position”, after U.S. Federal Housing Finance Agency director William Pulte had raised questions about Cook’s mortgages last week.

Cook was appointed by former U.S. President Joe Biden in 2022, and responded by stating that she will “continue to carry out my duties to help the American economy."

No president has attempted to remove a Fed governor before, so just what follows from here is unclear, but it’s likely a Cook challenge to Trump’s firing will end up in the Supreme Court. 

This move by Trump follows numerous threats to fire Fed Chair Jerome Powell, and marks a sharp escalation of the president’s battle against the Fed, which he blames for not lowering interest rates quickly.

2. U.S. futures slip lower 

U.S. stock futures slipped lower Tuesday, adding to the previous session’s losses amid concerns about the independence of the Federal Reserve after President Donald Trump announced the firing of Governor Lisa Cook. 

At 02:35 ET (06:35 GMT), the S&P 500 futures traded 8 points, or 0.1%, lower Nasdaq 100 futures dropped 45 points, or 0.2%, and Dow futures fell 70 points, or 0.2%.

The major indices closed lower Monday, as the new week started with a losing session in the wake of Friday’s big rally. The blue chip Dow Jones Industrial Average dropped 0.8%, the broad-based S&P 500 fell 0.4% and the tech-heavy NASDAQ Composite slipped 0.2%.

Aside from digesting the possible ramifications of Trump’s move against Cook [see above], investors will also wade through a raft of economic reports later Tuesday as the September Federal Reserve meeting draws nearer.

The latest durable goods orders and consumer confidence are due, as is the Case-Shiller Home Price Index and the Richmond Fed Manufacturing Index.

Richmond Federal Reserve President Thomas Barkin is also set to speak.

3. More tariffs?

Just as the turmoil surrounding the Trump administration’s trade policies appeared to be settling down, the U.S. president threatened countries that have digital taxes with "subsequent additional tariffs" on their goods if those nations do not remove such legislation.

Many countries, particularly in Europe, have levied taxes on the sales revenue of digital service providers, including Alphabet’s Google, Meta’s Facebook, Apple and Amazon. The issue has been a longstanding trade irritant for multiple U.S. administrations.

"With this TRUTH, I put all Countries with Digital Taxes, Legislation, Rules, or Regulations, on notice that unless these discriminatory actions are removed, I, as President of the United States, will impose substantial additional Tariffs on that Country’s Exports to the U.S.A., and institute Export restrictions on our Highly Protected Technology and Chips," Trump said in a social media post.

Trump in February ordered his trade chief to revive investigations aimed at imposing tariffs on imports from countries that levy digital service taxes on U.S. technology companies.

The U.S. president has also threatened China with 200% tariffs if Beijing does not export rare-earth magnets to the U.S. amid a trade dispute between the two nations.

China is increasingly sensitive about rare earths and its control over supply, adding several rare earth items and magnets to its export restriction list in April in retaliation to tariff hikes by the United States.

4. Mercedes begins offloading its Nissan stake

Nissan (TYO:7201) shares fell sharply on Tuesday after the company’s second-largest shareholder, Mercedes Benz (ETR:MBGn), said it will begin offloading its stake in the beleaguered Japanese automaker.

Nissan’s shares closed over 5% lower Tuesday, the worst performer on Japan’s benchmark Nikkei 225 index.

Mercedes Benz signaled that it will begin selling its roughly $346 million, or 3.8% stake in Nissan from this week, with the German auto giant stating that the stake had been transferred to its Mercedes’ pension unit and was not of strategic importance. 

The move puts further strain on the Japanese automaker’s stock that has been under pressure from U.S. tariffs, declining sales and the transition to electric vehicles amid steep global competition, in particular from Chinese rivals.

A planned merger with Honda (TYO:7267), which stood to create the world’s second-largest automaker, largely fell apart in early-2025. 

5. Gold climbs to two-week high

Gold prices rose Tuesday as safe haven demand was buoyed by increased concerns over Federal Reserve independence after Trump said he was firing Governor Lisa Cook. 

At 02:35 ET, spot gold rose 0.3% to $3,375.71 an ounce, while gold futures for October rose 0.2% to $3,423.95/oz. 

The Cook firing is Trump’s latest attack on the Fed, and comes as the president seeks to gain more influence over the Fed’s rate-setting activities. 

Replacing Cook with his own nominee could give Trump greater influence in the Fed’s seven-member board, which currently includes two of his nominees – Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman. 

Waller and Bowman had both voted for a rate cut during the Fed’s July meeting, in line with Trump’s demands.

Trump had earlier raised the possibility of firing Fed Chair Jerome Powell, sparking concerns over the central bank’s independence, which stand to hurt U.S. economic credibility in the long run. 

(Reuters contributed reporting.)