(Recasts with preliminary close of trading)

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EchoStar ( SATS ) jumps after AT&T ( T ) says it will buy licenses for

$23

billion

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AMD gains on Truist Securities' bullish upgrade

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Eli Lilly ( LLY ) up as drug cuts weight by 10.5% in diabetes

patients

By Noel Randewich

Aug 26 (Reuters) - The S&P 500 ended higher on Tuesday,

lifted by Nvidia ( NVDA ) and Eli Lilly ( LLY ), while U.S. President Donald

Trump's decision to fire a central bank governor deepened

concerns about the Federal Reserve's independence.

Nvidia ( NVDA ) rose ahead of its quarterly report on Wednesday,

which will show how the world's most valuable company is faring

in the crossfire of Washington and Beijing's ongoing trade war.

The chipmaker's report could also fuel - or dampen - Wall

Street's rally in AI-related stocks.

Trump late on Monday said he was removing Fed Governor Lisa Cook

over alleged improprieties in obtaining mortgage loans, adding

to concerns about the central bank's independence from politics.

S&P 500 futures briefly sank before the stock market recovered

as investors focused on unchanged expectations that the central

bank will begin cutting interest rates in September.

"The financial market community is increasingly concerned

about that independence. That is a real concern over the long

run. But over the short run, how much does it change the

trajectory of interest rate policy in the next six to 12 months?

I think the writing has already been on the wall that we get

easier monetary policy in the next six to 12 months," said Bill

Merz, head of Capital Market Research at U.S. Bank Wealth

Management, Minneapolis.

Despite lingering inflation pressures, traders have been pricing

in a 25-basis-point interest rate cut for the Fed's September

policy meeting, encouraged by dovish signals from Fed Chair

Jerome Powell, data pointing to labor market weakness and a

shakeup at the central bank.

Morgan Stanley became the latest brokerage to forecast an

interest-rate cut in September, but key upcoming inflation and

jobs reports could prompt investors to reassess expectations.

Eli Lilly ( LLY ) jumped after the drugmaker said its

experimental pill cuts body weight by 10.5% in diabetes

patients.

The S&P 500 is trading at about 23 times expected earnings,

a four-year high, heightening the risk of a selloff if Nvidia's ( NVDA )

results dent Wall Street's enthusiasm for AI-related stocks.

According to preliminary data, the S&P 500 gained

26.54 points, or 0.41%, to end at 6,465.86 points, while the

Nasdaq Composite gained 94.46 points, or 0.44%, to

21,543.76. The Dow Jones Industrial Average rose 134.18

points, or 0.30%, to 45,416.65.

Advanced Micro Devices ( AMD ) gained after Truist

Securities upgraded the chip stock to "buy" from "hold."

EchoStar ( SATS ) surged to a record high after telecom giant

AT&T ( T ) said it has agreed to buy certain wireless spectrum

licenses from the satellite communications firm for about $23

billion.