Market Wrap | US Stocks Surge as Fed Independence Debate Heats Up

On September 26, 2025, the U.S. stock market saw gains across major indices, with the S&P 500 rising 0.59%, the Dow Jones Industrial Average up 0.65%, and the Nasdaq Composite increasing 0.44%. Federal Reserve Board member Lisa Cook urged the Supreme Court to prevent President Trump's dismissal, emphasizing that such an action would undermine the Fed's independence and the stability of the U.S. market and economy. Meanwhile, another Fed member, Michelle Bowman, anticipated the neutral rate to be in the mid-range of 3%-4% and suggested considering the sale of mortgage-backed securities, expecting inflation to return to the 2% target after a one-time tariff adjustment.

Based on the current market performance, several sectors outperformed the S&P 500. The Utilities sector, Healthcare industry, Consumer Discretionary sector, Energy industry, Communication Services sector, Materials industry, Industrials sector, Real Estate industry, and Financials sector all showed strong performance. Notably, the Utilities sector, Consumer Discretionary sector, and Materials industry demonstrated exceptional performance.

Federal Reserve Governor Lisa Cook is seeking to prevent President Trump from dismissing her, arguing that such action would undermine the Fed’s independence. Meanwhile, Fed Governor Bowman suggested selling mortgage-backed securities and emphasized the importance of Fed autonomy in decision-making. Morgan Stanley has increased its stake in Alibaba from 6.81% to 12.29%, reflecting significant investment interest in the Chinese tech giant. Additionally, Alphabet’s Google has requested the US Supreme Court to halt a lower court’s ruling demanding changes to its app store policies, claiming potential irreversible damage to its Android ecosystem if the order proceeds.