05:08 PM EDT, 08/26/2025 (MT Newswires) -- US equities rose Tuesday as traders appeared to look past President Donald Trump's move to remove Federal Reserve Governor Lisa Cook, while awaiting earnings from tech bellwether Nvidia ( NVDA ) .

The tech-heavy Nasdaq Composite and the S&P 500 advanced 0.4% each to 21,544.3 and 6,465.9, respectively. The Dow Jones Industrial Average was up 0.3% at 45,418.1. Most sectors were higher, led by industrials, while consumer staples saw the biggest decline.

In a letter sent to Cook and shared on Truth Social Monday, Trump said he had determined "sufficient cause" to remove her from the Fed's board of governors, effective immediately. Trump said Cook may have made "false statements on one or more mortgage agreements."

Cook will file a lawsuit to prevent Trump from firing her, Reuters reported Tuesday, citing Cook's lawyer.

The US central bank reportedly said Tuesday that it would respect any court ruling on Trump's authority to dismiss Cook.

"We believe the subdued market response is a nod towards a potentially extended legal battle," Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute , said in a report e-mailed to MT Newswires. "Nevertheless, the dispute likely signals the potential for larger financial market movements to come."

"If the president succeeds in removing (Cook), we expect that he may secure a four-to-three majority of governors whose policy ideas align with his, and this has potential implications," Christopher said.

US Treasury yields were mostly lower, with the two-year rate falling 3.8 basis points to 3.7% and the 10-year rate losing 1.2 basis points to 4.26%.

Nvidia ( NVDA ) shares rose 1.1%. The chipmaking giant is slated to release its quarterly results on Wednesday.

"Expectations are high after a rapid run in (artificial intelligence) spending," said Ruben Dalfovo, investment strategist at Saxo Bank. "Nvidia ( NVDA ) is now the largest weight in the S&P 500 at roughly 8%, so its guidance can sway broad portfolios."

In company news, Eli Lilly ( LLY ) shares jumped 5.9%, the top gainer on the S&P 500. The drugmaker reported another set of late-stage trial data of its investigational weight-loss pill, setting it up for seeking global regulatory clearance of the oral treatment.

AT&T ( T ) agreed to acquire certain wireless spectrum licenses from EchoStar ( SATS ) in an all-cash deal worth about $23 billion, as the telecommunications giant looks to expand its spectrum portfolio and 5G coverage. EchoStar ( SATS ) shares surged 70%, while AT&T ( T ) fell 0.6%.

Brown-Forman (BF.A, BF.B) is expected to have faced a challenging fiscal first quarter amid pressures related to changes in distributors, RBC Capital Markets said Tuesday. The wine and spirits maker's class B shares were down 3.8%, among the worst performers on the S&P 500, while its class A shares fell 3.9%.

Traders also digested Trump's latest trade-related updates.

On Monday, the US leader said that he could impose 200% tariffs on Chinese goods if the Asian country continues to curb rare-earth magnet exports, news outlets reported.

"They have to give us magnets," Trump reportedly said. "If they don't give us magnets, then we have to charge them 200% tariffs or something."

In a Monday social media post, Trump said he will implement "substantial additional tariffs" in retaliation against countries that impose digital taxes on US technology firms. He vowed to place export restrictions on American chips.

"Digital taxes, digital services legislation, and digital markets regulations are all designed to harm, or discriminate against, American technology," Trump wrote. "They also, outrageously, give a complete pass to China's largest tech companies. This must end."

West Texas Intermediate crude oil was down 2.2% at $63.38 a barrel in Tuesday late-afternoon trade.

In economic news, US durable goods orders fell less than projected in July as weakness in the transportation equipment component persisted, official data showed.

The durable goods order report still had signs pointing to the US economy's underlying strength, BMO said.

"Business investment is off to a solid start in (the third quarter), following a strong first half of the year," BMO said. "Firms are going ahead with capital spending plans as trade tensions ease and uncertainty slowly subsides."

Manufacturing contraction in the US Mid-Atlantic region improved more than projected in August as shipments, new orders and employment rose, data from the Federal Reserve Bank of Richmond showed.

US home prices fell sequentially in June, while the annual growth rate was the slowest since the summer of 2023, S&P Global ( SPGI ) division S&P Dow Jones Indices said.

"For the first time in years, home prices are failing to keep pace with broader inflation," said Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices.

Separately, the Federal Housing Finance Agency said home prices fell 0.2% sequentially in June, following a 0.1% drop the previous month.

Gold was up 0.6% at $3,439.30 per troy ounce, while silver fell 0.2% to $38.64 per ounce.