US Stock Market Rebounds after Trump's Comments on Fed Chair

US stock indexes rose on Wednesday despite President Trump's comments on firing Fed Chair Jerome Powell, with the S&P 500 adding 0.3%, the Dow Jones Industrial Average rising 0.5%, and the Nasdaq composite gaining 0.3%. The Russell 2000 index of smaller companies rose 1%. For the week, the S&P 500 is up 0.1%, the Dow is down 0.3%, and the Nasdaq is up 0.7%. For the year, the S&P 500 is up 6.5%, the Dow is up 4%, and the Nasdaq is up 7.4%.

Title: US Stock Market Rises Despite Trump's Fed Chair Comments

US stock indexes demonstrated resilience on Wednesday, with the S&P 500 adding 0.3%, the Dow Jones Industrial Average rising 0.5%, and the Nasdaq composite gaining 0.3%. The Russell 2000 index of smaller companies rose 1%. For the week, the S&P 500 is up 0.1%, the Dow is down 0.3%, and the Nasdaq is up 0.7%. For the year, the S&P 500 is up 6.5%, the Dow is up 4%, and the Nasdaq is up 7.4% [1].

Despite President Trump's comments about potentially firing Federal Reserve Chair Jerome Powell, the market showed a positive response. The S&P 500 was able to maintain its gains, largely driven by upbeat earnings reports from major banks. Goldman Sachs Group Inc. climbed 0.5% after the firm's stock traders posted the largest revenue haul in Wall Street history. Bank of America Corp. also saw a record second quarter, reaping the benefits of volatile markets. Meanwhile, Morgan Stanley fell 2.2% despite stock traders scoring their best second quarter on record [1].

The Philadelphia Semiconductor Index, which includes Nvidia Corp., Advanced Micro Devices Inc., and Micron Technology Inc., slumped 1.4%. This decline was offset by a string of profit updates from big banks, which kept broader gains in check. The equities benchmark slipped less than 0.1% as of 9:57 a.m. in New York, leaving it 0.6% from a fresh all-time high [1].

The Nasdaq 100 Index fell 0.4%, a day after notching a new record. US-listed shares of ASML Holding NV dropped nearly 10% after the chip equipment maker struck a more cautious tone about growth outlook next year. The Philadelphia Semiconductor Index, which houses Nvidia Corp., Advanced Micro Devices Inc. and Micron Technology Inc., slumped 1.4% [1].

The US Dollar Index (DXY) also saw a decline after CBS reported that Trump asked GOP lawmakers if he should fire Fed Chair Jerome Powell. The US Dollar Index (DXY) is trading sharply lower near 98.00 during American trading hours, retreating from an intraday high of 98.91 as traders react to renewed political uncertainty surrounding the Fed [2].

The June CPI data came in mixed, with headline inflation rising in line with expectations but core inflation slightly softer than forecast. This mixed data curbed hopes of Fed interest-rate cuts and led to a notable shift in market expectations for Federal Reserve policy [2].

In a separate development, President Trump finalized a trade deal with Indonesia, imposing a 19% tariff on Indonesian exports. This move comes amidst ongoing trade tensions and the threat of new tariffs on pharmaceuticals and semiconductors. The US Dollar Index (DXY) broke decisively above the 97.80-98.00 resistance zone following the latest US CPI report, above the upper boundary of the falling wedge pattern [2].

The S&P 500 Index shuffled between small gains and losses on Wednesday, as a decline in chipmakers kept broader gains in check as traders parsed cooling producer prices and a string of profit updates from big banks. The Philadelphia Semiconductor Index, which houses Nvidia Corp., Advanced Micro Devices Inc. and Micron Technology Inc., slumped 1.4%. Though US stocks got a boost after wholesale inflation was little changed in June, with investors keen to parse corporate earnings for further details of the impact of President Donald Trump’s tariffs [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-16/s-p-500-waffles-as-chipmaker-losses-offset-upbeat-bank-results
[2] https://www.fxstreet.com/news/us-dollar-holds-firm-after-cpi-driven-rally-as-markets-eye-ppi-data-202507161159