Trump says he has no plan to fire Powell, three major stock indexes fluctuate: Dow, S&P, and Nasdaq diverge

Stock Market Overview on July 16, 2025

U.S. stock markets experienced a volatile session today, with major indices wavering amid mixed economic data and political developments. The Dow Jones Industrial Average (DJIA), S&P 500, and Nasdaq Composite showed small, inconsistent movements throughout the day, ultimately closing with minimal changes. This choppiness was partly attributed to President Trump’s comments clarifying that he is “not planning” to fire Federal Reserve Chair Jerome Powell, which helped ease some investor concerns after earlier reports suggested a potential ouster.

 Trump’s statement came in response to speculation fueled by his previous criticisms of Powell and the Fed’s policies, including a draft letter reportedly prepared for Powell’s dismissal.

Key Index Performance

Based on the most recent intraday and closing updates:

• Dow Jones Industrial Average (^DJI): Closed at 44,057.07, up +0.08% (or about +34 points). Earlier in the session, it added as much as 0.3% before paring gains.
• S&P 500 (^GSPC): Ended at 6,240.40, down -0.05% (or about -3 points). The index rose 0.1% at points during the day but drifted lower, reflecting broader market uncertainty.
• Nasdaq Composite (^IXIC): Finished at 20,638.58, down -0.19% (or about -39 points). Tech stocks provided some support, but the index briefly dropped as much as 0.8% before recovering slightly.

These figures indicate a market hovering near all-time highs, with the S&P 500 and Nasdaq remaining elevated despite the day’s hesitation.

 Yesterday (July 15), the markets had shown more pronounced declines in the Dow and S&P 500 following hotter-than-expected inflation data, but today’s session rebounded somewhat.

Impact of Trump’s Comments on Powell

President Trump stated it’s “highly unlikely” he would remove Powell, saying, “We’re not planning on doing it,” though he refused to completely rule it out.

 This followed reports that Trump had asked GOP lawmakers about firing Powell and even prepared a letter for his termination, citing sources close to the White House.

 The Fed’s denial of immediate plans helped stocks recover from intraday lows, as investors fear that firing Powell could undermine the central bank’s independence, lead to policy instability, and potentially roil interest rate expectations. Powell’s term as chair is set to expire in May 2026, but Trump has long criticized him for not cutting rates faster to stimulate the economy.

Markets are sensitive to Fed leadership changes because they influence monetary policy direction, which affects borrowing costs, inflation—key drivers for stock valuations. Today’s wavering reflects ongoing uncertainty, with some analysts noting that while the statement provided short-term relief, broader concerns about tariffs, inflation, and earnings season contributed to the mixed sentiment.

Other Market Highlights

• bond yields rose slightly, with the 10-year Treasury note yield increasing to around 3.45%, as investors digested recent CPI data showing acceleration.
• Sector performance was uneven: Tech and AI stocks, including gains in Tesla and BlackRock, supported the Nasdaq, while healthcare (e.g., Eli Lilly) and consumer staples saw declines.
• Looking ahead, investors are focusing on upcoming bank earnings from J&J and others, as well as potential policy announcements.

For real-time updates, check reliable financial sites like CNBC or Bloomberg. If you’d like analysis on specific stocks or sectors, let me know!