U.S. stocks closed higher on Wednesday, with the S&P 500 edging up after President Donald Trump denied reports suggesting he was preparing to fire Federal Reserve Chairman Jerome Powell.
At the close of trading, the Dow Jones Industrial Average rose by 231 points (0.5%), the S&P 500 gained 0.3%, and the Nasdaq Composite added 0.3%, ending at a new record high of 20,730.49.
Trump Denies Plans to Fire Powell
Speaking to reporters, President Trump said he was “not planning anything” regarding Powell’s position, pushing back against earlier speculation that a dismissal was imminent. While denying the reports, Trump reiterated his dissatisfaction with Powell, criticizing the Fed for maintaining high interest rates and accusing the central bank of mismanaging an expensive renovation of its headquarters.
Wholesale Inflation Flat in June
On the economic front, U.S. producer prices were unchanged in June, with the Producer Price Index (PPI) showing 0.0% growth month-over-month, slowing from 0.3% in May. On an annual basis, the PPI rose 2.3%, down from 2.7% in the previous month. Economists had expected a 0.2% monthly increase and 2.5% year-over-year growth.
The slowdown was attributed in part to a drop in travel accommodation prices, which helped offset rising costs in goods for final demand.
Consumer Inflation Accelerates
The inflation report follows Tuesday’s consumer price data, which showed headline inflation rising 2.7% year-over-year in June, above the 2.6% forecast and up from 2.4% in May. On a monthly basis, CPI rose 0.3%, in line with expectations.
The uptick in consumer inflation has raised concerns that the effects of Trump’s aggressive tariff policies are beginning to materialize.
Beige Book to Provide Economic Insight
Investors are also eyeing the upcoming release of the Federal Reserve’s Beige Book, a key economic report compiling anecdotal data from across the country. Analysts at Vital Knowledge noted the Beige Book’s heightened importance amid “stagflationary forces” characterized by sluggish growth and persistent price pressures, largely driven by trade uncertainty.
Trade Tensions Escalate
Tariff concerns remain front and center. On Tuesday night, Trump reaffirmed plans to impose 200% tariffs on pharmaceutical imports by month’s end, coinciding with the rollout of other trade measures. He also announced a new 19% tariff on Indonesian goods, part of a broader trade agreement with the Southeast Asian nation.
The administration continues to pursue additional deals, including framework agreements recently reached with the U.K., China, and Vietnam. A firm August 1 deadline for implementing the reciprocal tariffs remains in place after earlier delays sparked market volatility.
Earnings Season Heats Up
Quarterly earnings were also in focus. Major banks reported mixed results:
- JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WFC) posted results that beat estimates, though the market response was lukewarm.
- JPMorgan CEO Jamie Dimon warned of “significant risks” from trade policies and rising fiscal deficits.
- Bank of America (BAC) climbed after reporting higher Q2 profits, driven by increased trading revenues.
- Goldman Sachs (GS) also rose, with profit surging on record equities trading and stronger investment banking activity.
- Morgan Stanley (MS) shares fell despite a profit increase, as traders digested the outlook.
In other corporate news:
- Johnson & Johnson (JNJ) rose after boosting its full-year sales forecast, even as it faces potential tariff-related headwinds.
- Tesla (TSLA) jumped 3% following the announcement of a new six-seater Model Y, expected this fall.
- Global Payments (GPN) surged 5% after reports that Elliott Management had taken a stake in the company.
Crypto Stocks Rally on Stablecoin Bill Momentum
Crypto-related equities moved higher on hopes that two major stablecoin bills — the GENIUS Act and CLARITY Act — will advance in Congress this week. While both measures initially failed a House vote on Tuesday, optimism remains that they will ultimately pass.
Notable gainers included:
- Circle Internet Group (CRCL)
- Coinbase Global (COIN)
- Marathon Digital Holdings (MARA)
The bills are expected to pave the way for broader use of stablecoins and further crypto adoption in regulated financial markets.
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