Stocks make round-trip to close higher as Trump denies Fed chief rumors
U.S. stocks closed higher after a roller coaster day driven by President Donald Trump's comments on Federal Reserve Chair Jerome Powell.
The blue-chip Dow added 0.5%, or 231.61 points, to close at 44,254.90. The broad S&P 500 index was up 0.3%, 19.94 points, closing at 6,263.70. The Nasdaq Composite Index tacked on 52.69 points, 0.25%, and closed at 20,730.49.
Meeting reporters at the White House, Trump initially seemed to suggest he was getting ready to try to fire the central bank chief, who has drawn the president's wrath because he hasn't yet cut interest rates. Stocks, which had opened slightly higher, turned lower, and bond yields rose, signaling investors were selling. Later, when Trump clarified that he was not planning to fire Powell, financial markets reversed course.
The benchmark 10-year U.S. Treasury note ended the day about 3 basis points lower, at 4.455%.
Economic news
The producer price index, which reflects the prices businesses pay for their goods and services, was unchanged in June, helping assuage some concerns about the impact of tariffs. The Dow Jones consensus estimate was for a 0.2% rise in June. The reading came one day after the consumer price index showed signs of accelerating in June. Uncertainty about inflation is one major reason the Fed is holding steady on interest rates.
Crypto news
Digital currencies and the stocks of several crypto businesses rose Wednesday as the U.S. House of Representatives' "Crypto Week" continued. Bitcoin was up 2.5%, to about $119,217, at last check, while Coinbase shares added 2.6%.
Meanwhile, Bank of America's CEO said the company was exploring the use of stablecoins during an analyst call. The bank's stock was down more than 2% midday.
Corporate news
- Goldman Sachs reported earnings that jumped 22% compared to a year ago, trouncing analyst expectations. The bank's bottom line was boosted by trading and investment banking services. The stock closed up 0.8%. Bank of America's profits also beat expectations.
- Shares of Johnson & Johnson, which on Tuesday reported earnings that beat expectations and nudged its 2025 outlook higher, closed more than 6% higher.