The US Supreme Court issued an emergency order preventing President Donald Trump from removing Federal Reserve governor Lisa Cook, marking a significant legal intervention in the central bank's independence. Cook had faced dismissal amid escalating tensions over monetary policy disagreements, with the court's decision preserving her position pending further judicial review.

Market reaction was swift as investors pulled $2.7tn from Magnificent Seven tech stocks, fueling a major rotation on Wall Street. The dramatic shift reflects growing concerns about regulatory uncertainty and political interference in financial institutions, with fund managers seeking safer havens amid the controversy.

Foreign investors have also expressed alarm over Japan's apparent retreat from corporate governance reforms, fearing the government may weaken previously promised changes to improve shareholder returns and board independence. This adds to global uncertainty as institutional investors reassess exposure to Japanese markets.

The Supreme Court's intervention signals heightened scrutiny of executive branch attempts to influence the Federal Reserve, potentially strengthening long-term central bank autonomy while creating immediate market volatility around tech-heavy portfolios.