On the evening of August 26, the three major U.S. stock indices were all near flat.

Wall Street looked beyond Trump's dismissal of Federal Reserve Governor Lisa Cook and turned to the upcoming quarterly earnings report from chip giant NVIDIA.

After Trump announced the dismissal of Cook, long-term U.S. bond yields rose while short-term yields fell, as investors bet that short-term interest rates might decline. However, as the Federal Reserve's focus on inflation weakens against a politicized backdrop, long-term rates may ultimately move higher. The U.S. Dollar Index, which measures the dollar against a basket of major currencies, fell 0.3%.

The market has already held hopes for a possible rate cut in September, as hinted by Powell last week at the Jackson Hole meeting in Wyoming. Investors are also focusing on NVIDIA's earnings report due on Wednesday, which could boost large-cap tech trading after recent pullbacks. Previously, the "Magnificent Seven" stocks had fallen for five consecutive days until rebounding last Friday.

Adam Crisafulli, founder of Vital Knowledge, said: "In the short term, the market may quickly downplay the Cook news (assuming this is an isolated incident and Trump does not attempt to fire Powell again), and attention will return to NVIDIA, PCE (personal consumption expenditures), and employment data. But the Fed's independence is undoubtedly being eroded, and this process will have long-term negative effects."

Additionally, Trump said on Monday that he plans to impose "massive" new tariffs on countries that have not abolished digital taxes and implement chip export restrictions, which also weighed on market sentiment.

However, investors are highly anticipating NVIDIA's earnings report scheduled for after the close on Wednesday, which has supported the market to some extent. Shares of the leading AI chip company rose about 1%, extending significant gains from the previous two trading sessions.

Anthony Saglimbene, chief market strategist at Ameriprise, said: "The key is execution." He believes NVIDIA's performance will be "good." Can NVIDIA deliver and meet the currently high market expectations? Will they raise guidance? Will they exceed market expectations? These factors will determine how the market reacts.

On the economic data front, U.S. business equipment orders in July rose more than expected, indicating that companies are continuing to advance investment plans as uncertainties surrounding some trade and tax policies gradually subside.

In terms of individual stocks, Advanced Micro Devices (AMD) rose up to 3% after the company and IBM announced a supercomputing partnership focused on quantum technology.

Eli Lilly rose 4% as its experimental weight-loss drug helped patients lose 9.6% of their body weight in clinical trials, bringing the drug closer to potential approval.

Chinese stocks performed well, with the Nasdaq Golden Dragon China Index rising over 1.5% at one point. At the time of writing, new automakers such as NIO and XPeng led the gains.