US Wall Street ends higher after a volatile session fueled by rumors of Federal Reserve Chair Jerome Powell’s possible dismissal. Despite the brief turbulence, the Nasdaq Composite achieved another record close, while the S&P 500 and Dow Jones Industrial Average posted modest gains.
Midday trading saw sharp declines when reports suggested President Trump planned to fire Powell. The S&P 500 and Nasdaq both dropped over 1%, while the dollar weakened and Treasury yields climbed. This sudden market reaction highlighted investor concerns about potential disruptions to monetary policy and economic stability.
However, US Wall Street ends higher as updated reports cast doubt on the initial claims about Powell’s removal. Investors reassessed the situation and resumed buying, focusing on strong corporate earnings and upcoming economic indicators. Analysts credited the market’s resilience to confidence in the Federal Reserve’s independence and the economy’s underlying strength.
Tech stocks played a critical role in the recovery, with major players leading gains. The Nasdaq’s record close reflected continued investor optimism about the sector’s growth potential. Meanwhile, the S&P 500 and Dow also benefited from rebounds in financials and consumer discretionary stocks.
Traders initially feared Powell’s departure could create uncertainty around interest rate decisions. Many believed leadership changes at the Fed might alter its approach to managing inflation and supporting growth. These concerns drove a temporary flight to safer assets, boosting Treasury yields and causing a brief dip in the dollar’s value.
As the day progressed, market sentiment improved when no official confirmation supported the firing rumors. Investors shifted their attention back to corporate earnings reports, which have so far exceeded expectations across several sectors. Analysts suggested this earnings strength continues to underpin market gains.
US Wall Street ends higher amid expectations for upcoming economic data releases. Reports on job growth, consumer spending, and inflation are due later in the week, and traders are watching closely for signs of continued economic momentum.
Financial strategists noted the session’s volatility serves as a reminder of market sensitivity to political headlines. Some warned that similar events could lead to increased short-term fluctuations if clarity from policymakers remains lacking.
The session’s close showed all three major indexes advancing. The Nasdaq’s new record demonstrated strong investor confidence in technology’s long-term potential. The S&P 500 and Dow posted smaller but meaningful gains, reflecting broad-based support across sectors.
Despite the day’s earlier chaos, many traders saw the quick rebound as a positive signal for market stability. However, experts cautioned that future political uncertainties might continue testing investor nerves in the months ahead.
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