Stocks closed higher after reports circulated that President Trump was considering firing Federal Reserve Chair Jerome Powell. The Dow Jones Industrial Average rose 0.5%, while the Nasdaq Composite hit a record high for the third consecutive day.
Trump’s potential firing of Powell caused a brief market slide, but the president later stated it was “highly unlikely.” Trump has criticized Powell for not cutting interest rates and has raised concerns about the Fed’s headquarters renovation costs, hinting at possible dismissal.
Amid the Powell controversy, markets were focusing on encouraging inflation data and bank earnings reports. Producer prices rose less than expected in June, easing concerns about inflation and potential rate cuts by the Fed.
Goldman Sachs and PNC Financial shares rose, while Morgan Stanley and Bank of America closed slightly lower. Johnson & Johnson reported better-than-expected results, boosting its stock. ASML Holding shares tumbled after the company expressed uncertainty about growth in 2026.
Technology stocks like Tesla and Nvidia saw mixed performance, while crypto-related stocks rose alongside bitcoin prices. The 10-year Treasury note yield dropped, and the U.S. dollar index fell slightly.
Global Payments and Apollo Global Management were among the top S&P 500 movers, while Ansys, Universal Health Services, and Micron Technology saw declines. Sarepta Therapeutics announced a restructuring plan, leading to a surge in its stock price.
GrabAGun, an online firearms retailer backed by Donald Trump Jr., faltered in its trading debut. Netflix is expected to report earnings, with analysts anticipating a potential 6% stock movement post-earnings.
The Federal Reserve’s Beige Book highlighted concerns about tariffs driving up prices, impacting various industries. Trump’s denial of Powell’s firing and market reactions reflected ongoing economic uncertainties.
Bank of America’s profit exceeded expectations, while ASML Holding’s growth uncertainty led to a stock plunge. Goldman Sachs reported strong earnings, outperforming estimates. Johnson & Johnson raised its outlook after beating Q2 estimates.
Stock index futures showed mixed movements, with Dow Jones futures up, S&P 500 futures slightly down, and Nasdaq 100 futures rising. Overall, market dynamics reflected a blend of economic data, earnings reports, and geopolitical uncertainties shaping investor sentiment.
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