U.S. financial markets edged higher on Tuesday, with investors shrugging off immediate concerns over President Trump's decision to remove Lisa Cook from the Federal Reserve's Board of Governors, an unprecedented move that analysts say could hinder the central bank's independence.

The S&P 500 gained 26 points, or 0.4%, to close at 6,466, while the Dow Jones industrial Average climbed 135 points, or 0.3%. The tech-heavy Nasdaq Composite added 95 points, or 0.5%.

The muted reaction in the U.S. contrasted with sharp declines on global markets, as investors digested news of a potential Fed shakeup that could reshape the composition of the Board of Governors.

Mr. Trump made his announcement in a letter posted on Truth Social on Monday evening, accusing Cook of mortgage fraud. The preside

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