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Indexes off: Dow 0.06%, S&P 500 0.13%, Nasdaq 0.25%

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EchoStar ( SATS ) jumps after AT&T ( T ) to buy spectrum licenses for $23

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AMD gains on Truist Securities' bullish upgrade

(Updates after market opens)

By Johann M Cherian and Sanchayaita Roy

Aug 26 (Reuters) - Wall Street's main indexes were flat

on Tuesday, pressured by a rise in Treasury bond yields as

President Donald Trump's decision to fire a central bank

governor renewed concerns about the Federal Reserve's

independence.

Investors also awaited Nvidia's ( NVDA ) results and a key

inflation report later this week for more insight on artificial

intelligence and interest rate cuts - the two big themes behind

recent market gains.

In an unprecedented move, Trump said he was removing Fed

Governor Lisa Cook over alleged improprieties in obtaining

mortgage loans, prompting investor unease about what it could

also mean for the outlook on monetary policy just weeks ahead of

the central bank's meeting.

Trump's action is likely to face legal challenges but, if

successful, it would let him nominate a new member to the Fed's

board at a time when he has called for lower interest rates.

"Before there were only been words and threats. Now the fact

that an actual decision has been implemented, that has garnered

the attention of the investment community more than before,"

said Peter Andersen, founder of Andersen Capital Management.

Despite lingering inflation pressures, traders have been

pricing in a 25-basis-point interest rate cut for September,

encouraged by dovish signals from Fed Chair Jerome Powell, data

pointing to labor market weakness and a shake up at the central

bank.

Key upcoming inflation and jobs reports could prompt

investors to reassess rate-cut expectations.

At 09:49 a.m. ET, the Dow Jones Industrial Average

fell 26.31 points, or 0.06%, to 45,256.16, the S&P 500

lost 8.19 points, or 0.13%, to 6,431.13 and the Nasdaq Composite

lost 53.53 points, or 0.25%, to 21,395.76.

Six of the 11 S&P 500 sectors edged lower, with

communication services leading losses with a 0.6%

drop.

U.S. 10-year and 30-year Treasuries

also fell and the dollar declined against major currency

pairs. Bond yields move inversely to prices.

Nvidia's ( NVDA ) results on Wednesday will be a major catalyst for

U.S. stocks that have rallied over the past few years on the

potential earnings growth from AI. Investors will also look for

details on how the recent revenue-sharing deal with the U.S.

government could impact forecasts.

The AI enthusiasm has also pushed up valuations of Wall

Street's benchmark S&P 500 to above long-term averages,

heightening the risk of a selloff in case the chip giant falls

short of market expectations. Nvidia's ( NVDA ) shares were marginally

lower.

Advanced Micro Devices ( AMD ) gained 1.6% after Truist

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

Eli Lilly ( LLY ) gained 4.2% after the drugmaker said its

experimental pill cuts body weight by 10.5% in diabetes

patients.

EchoStar ( SATS ) jumped 76%, hitting a record high in early

trading, 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.

Meanwhile, data showed new orders for manufactured capital

goods increased more than expected in July. Investors will also

focus on remarks from Richmond Fed President Thomas Barkin.

Advancing issues outnumbered decliners by a 1.27-to-1 ratio

on the NYSE and by a 1.51-to-1 ratio on the Nasdaq.

The S&P 500 posted six new 52-week highs and no new lows

while the Nasdaq Composite recorded 52 new highs and 23 new

lows.

(Reporting by Johann M Cherian and Sanchayaita Roy in

Bengaluru; Editing by Devika Syamnath)