US stocks wavered Tuesday as Wall Street absorbed President Trump's bid to remove Federal Reserve governor Lisa Cook and his fresh threat to impose digital tax-related tariffs.

The Dow Jones Industrial Average (^DJI) fell below the flat line, while the S&P 500 (^GSPC) climbed nearly 0.1%. The tech-heavy Nasdaq Composite (^IXIC) rose 0.2%. The mixed performance among the major gauges follows a pullback in stocks Monday after a record-setting rally at the end of last week.

Investors are treading carefully after Trump took to social media to ramp up pressure in his Fed feud and in his trade offensive.

The president said late Monday that he had determined there was "sufficient cause" to oust Cook, after the top Fed official resisted persistent demands for her resignation over allegations of mortgage fraud. Cook responded by saying Trump didn't have the authority to fire her and that she wouldn't step down.

Longer-dated US bond prices fell amid concerns that Trump's moves against Fed independence as he pushed for interest rate cuts could stoke inflation. The yields on 10-year (^TNX) and 30-year (^TYX) Treasurys rose to about 4.3% and 4.9%, respectively.

On the trade front, Trump vowed to impose fresh tariffs and export curbs on chips and technology from countries that "unfairly" placed taxes on US digital services, speaking in a Monday social media post. The reprisal risks escalating trade tensions between the US and the European Union, which defended its use of the measures on Tuesday.

Read more: The latest on Trump's tariffs

Meanwhile, Wall Street is bracing for Nvidia (NVDA) earnings, which land Wednesday after the bell. Expectations for its results are sky-high, with the company's stock up almost 34% so far this year, even as restrictions on chip sales to China have possibly cost the company billions.

Shares of Advanced Micro Devices (AMD) climbed nearly 2% after the company announced a new partnership with IBM (IBM).

The companies said they're developing a \\"hybrid\\" model of computing combining IBM's quantum computers with AMD's AI chips.

IBM in June said it is building the world's first large-scale quantum computer capable of operating without errors, set to launch by 2029.

\\"As we partner with IBM to explore the convergence of high-performance computing and quantum technologies, we see tremendous opportunities to accelerate discovery and innovation,\\" AMD CEO Lisa Su saidin a statement.

Also boosting AMD stock, Truist Securities analyst William Stein upgraded his rating on shares to Buy from Hold. Stein said that, while he saw AMD's AI chips initially only being used as a \\"price check\\" to Nvidia, now \\"hyperscalers are working with AMD in a partnership manner, expressing true interest in deploying AMD at scale.\\"

Stein said that AMD's gain on Intel in the CPU market (central processing units, or traditional computer chips) could provide a model for AMD gaining on Nvidia in the GPU (graphics processing units, or AI chips) market.

Stein raised his price target on the stock to $213 from $173.

GoPro (GPRO) shares fell as much as 4.5% Tuesday, before paring losses, after surging 36% during the prior trading session.

GoPro is one of a group of the latest meme stocks including OpenDoor (OPEN), Krispy Kreme (DNUT) and Kohl's (KSS) that have emerged this summer.

Shares of the mountable camera maker are up 50% for the year. Meanwhile, OpenDoor stock is up roughly 105% in 2025, climbing 14% Tuesday.

US stocks wavered at the open Tuesday as Wall Street watched President Trump's moves to oust Fed governor Lisa Cook and his fresh tariff threats.

The Dow Jones Industrial Average (^DJI) edged down 0.1%, while the S&P 500 (^GSPC) was roughly flat. The tech-heavy Nasdaq Composite (^IXIC) hovered above the flat line.

Stocks continued to lag after Monday's pullback followed a strong rally on Friday.

Shares of Eli Lilly (LLY) popped 3% Tuesday morning after the drugmaker announced its weight-loss pill met its goals during clinical testing, paving the way for it to submit the drug to the FDA and compete with rival Novo Nordisk (NVO) for dominance in the anti-obesity market.

The Financial Times reports:

Lilly said on Tuesday that its orforglipron pill reduced the body weight of people who were overweight and suffered from diabetes by 10.5 per cent on average. It noted that the side effects were similar to those for its injectable weight-loss drugs.

The results come after the market was disappointed earlier this month by the results of an orforglipron trial in people without diabetes: participants lost an average of 12.4 per cent of their body weight, at the lower end of expectations.

Kenneth Custer, an executive vice-president at Lilly, said the company anticipated that it would submit orforglipron for approval by the US Food and Drug Administration later this year. Analysts have said the FDA could give the go-ahead next year.

Read more here.

Defense stocks held steady after Commerce Secretary Howard Lutnick told CNBC's Squawk Box on Tuesday that the Trump administration was thinking about taking stakes in top defense contractors after the US took a 9.9% stake in Intel (INTC).

When asked about the potential for the administration to strike other deals with US companies that do business with the government, Lutnick replied: “Oh, there’s a monstrous discussion about defense.”

\\"Lockheed Martin makes 97% of their revenue from the US government; they are basically an arm of the US government,\\" Lutnick said. \\"But what’s the economics of that? I’m going to leave that to my Secretary of Defense and the deputy Secretary of Defense. These guys are on it, and they’re thinking about it.\\"

Lockheed Martin (LMT) stock rose 0.4% in premarket trading.

RTX (RTX) shares also rose 0.4%, while L3Harris (LHX) gained 0.2%, and Northrop Grumman (NOC) was roughly flat. Meanwhile, shares of Palantir (PLTR) fell 0.9%.

Lutnick's comments come after President Trump said Monday morning that he wanted to see \\"many more cases\\" like Intel.

\\"I will make deals like that for our Country all day long,\\" Trump said.

Shares of EchoStar (SATS) rocketed higher in premarket trading, up 65% as investors welcomed news the company has sold a tranche of wireless spectrum to AT&T (T) in a $23 billion deal.

“This transaction is part of EchoStar‘s ongoing efforts to resolve the Federal Communications Commission’s inquiries,” Dish TV owner EchoStar said in a statement on Tuesday.

In May, the FCC told EchoStar it was investigating its obligations to provide 5G wireless service in the US, with a focus on buildout extension and mobile-satellite service. The following month, President Trump urged the company to come to a deal with the FCC over spectrum licences, reports said.

The licenses cover more than 400 markets across the US in total and will strengthen AT&T's low-band and mid-band spectrum holdings, the communications giant said, per Reuters.

Read more here.

Treasury yields rose, and the dollar fell on Tuesday after President Trump said late Monday he removed Federal Reserve Governor Lisa Cook from her post.

The 10-year yield (^TNX) ticked up 1 basis point to 4.27%, while the 30-year yield (^TYX) rose 2 basis points to 4.91%. The dollar index (DX-Y.NYB) fell 0.27%.

Yahoo Finance's Allie Canal reports that Trump's decision to follow through on a threat to oust Cook if she refused to resign comes after members of his administration alleged that Cook engaged in mortgage fraud related to the purchase of two properties earlier this decade.

\\"You are hereby removed from your position on the Board of Governors of the Federal Reserve, effective immediately,\\" the president wrote in a letter addressed to Cook and shared on social media. \\"I have determined there is sufficient cause to remove you from your position.\\"

Read more here.

Options traders are pricing in about a $260 billion swing in Nvidia's (NVDA) market value following the chipmaker's second-quarter earnings expected on Wednesday, market data has shown.

Reuters reports:

Nvidia options implied a roughly 6% swing for the shares in either direction following the results, which will be reported after markets close on Wednesday, according to the data.

That is below the 7% long-term average move, suggesting that investors may now have a better handle on what to expect as the company matures.

\\"The ripples out of Nvidia might be more interesting than the actual move for Nvidia,\\" said Chris Murphy, co-head of derivatives strategy at Susquehanna, a market maker. \\"A lot of these really high-flyer, speculative AI names have come off a lot, but Nvidia is basically back right below its all-time high.\\"

Read more here.

Small-cap stocks are finally playing catch-up, leaving a market — which has been burned before — wondering if this time is for real, writes Yahoo Finance's Hamza Shaban in today's Morning Brief.

He reports:

Fed Chair Jerome Powell reenergized the stock market on Friday as investors took his Jackson Hole remarks as a wink and a nod that a cut will be coming in September. Not surprisingly, interest rate-sensitive areas surged ahead, putting the small-cap Russell 2000 index up around 4% over the past month.

The boost is a long time coming. While the S&P 500 (^GSPC), Nasdaq (^IXIC), and even the Dow (^DJI) have enjoyed plenty of record highs recently, the euphoria has not trickled down. The Russell 2000 (^RUT) hasn't seen a record close since 2021, despite nearly making it back to the top last fall before crashing once again as the trade war took off.

Even as megacap tickers maintain staggering highs, some analysts see this small-cap run as the beginning of a rotation, signaling an end to the longstanding dominance of the tech giants.

A broadening of the market rally would coincide with the next phase in the economic cycle. And it would allow sky-high valuations to take into account the skepticism of the AI trade, which resurfaced last week amid chatter of corporate restructuring, a lack of return on AI investments, and fear of an AI bubble. ...

But Monday's market action provided the first hint that all that might still not be enough for small caps, as the Russell went back to its lagging ways. While one session alone is hardly proof that the rotation idea is off base, there's a sense that investors betting against Big Tech do so at their peril.

Read more here.

Economic data: FHFA house price index (June); S&P CoreLogic Case-Shiller 20-City; Conference Board Consumer Confidence (August); Richmond Fed manufacturing index (August)

Earnings: BMO (BMO), MongoDB (MDB), Okta (OKTA), PVH (PVH)

Here are some of the biggest stories you may have missed overnight and early this morning:

Trump moves to oust Fed's Cook, escalating unprecedented fight

Small caps are finally getting rate cuts — but might still lag

Trump threatens more tariffs in digital tax reprisal

AT&T to buy spectrum licenses from EchoStar for about $23B

Corporate America's buoyant tone at odds with Wall Street angst

Trump targeting Cook shows his Fed feud has limits

Nvidia set for $260 billion price swing after earnings

30-year Treasury yield rises as Trump targets Fed's Cook

France's government risks new collapse, weighing on markets

Here's a look at some of the top stocks trending in premarket trading:

Wolfspeed (WOLF) shares jumped more than 3% premarket after its fourth quarter results. The chipmaker, which has been grappling with a Chapter 11 and a restructuring, reported a loss per share $4.30, compared to a loss of $1.39 per share during the same period a year ago. Revenue came in at $197 million, compared to $201 million the previous year. Wall Street analysts expected worse results.

Interactive Brokers Group (IBKR) stock rose 3% before the bell on news it will be joining the S&P 500 (^GSPC) at the start of trading on Thursday, replacing Walgreens Boots Alliance.

Constellation Brands (STZ) stock fell over 1% premarket on Tuesday and was down more than 1% after dropping 2% Monday. RBC Capital cut its price target on the beer, wine and spirits company to $230 from $233, though it maintained an Outperform rating.

Gold (GC=F) rose overnight Monday as news of President Trump's announced intent to remove Federal Reserve Governor Lisa Cook from her position. With uncertainty around the legality of the move, or the broad impact upon markets, investors pushed up the haven asset as a safeguard against instability.

Bloomberg reports:

Bullion climbed as much as 0.6% in early Asian trading, erasing an earlier decline, after Trump posted a letter with the announcement on his Truth Social account late on Monday. The dollar weakened against every major peer and short-dated Treasury yields slipped, adding support for gold, which is priced in the currency.

The move is Trump’s latest attempt to pressure the Fed leadership, whom he has called on repeatedly but unsuccessfully to lower interest rates. The central bank has held monetary policy steady so far in 2025 amid concerns that Trump’s tariffs will fuel inflation, though on Friday Chair Jerome Powell signaled a potential adjustment in September. Lower rates tend to benefit non-yielding gold.

Forcing out Cook, who is facing allegations of mortgage fraud, would allow Trump to secure a four-person majority on the seven-member board. Earlier this month, he chose Council of Economic Advisers Chairman Stephen Miran to serve in the place of Adriana Kugler, who vacated her position early.

Read more here.