Market Wobbles: Trump's Fed Chair Drama and Inflation Worries

Stock Market Highlights:

• S&P 500: Up by 0.32%, closing at 6,263.70
• Nasdaq Composite: Gained 0.26%, hitting a new high for the year at 20,730.49
• Dow Jones Industrial Average: Added 231.49 points (0.53%), closing at 44,254.78
• Dow's Low Point: Dropped 264.31 points during the day

Trump vs. Powell: Market Rumors

• Rumors of Firing: Speculation that President Donald Trump might fire Jerome Powell, Chair of the Federal Reserve.
• Trump's Statement: Initially denied the rumors but later admitted considering it.
• White House Official: Confirmed Trump is thinking about removing Powell.
• New York Times Report: Trump wrote a letter to fire Powell and showed it to some lawmakers.

Interest Rates and Tariffs

• Trump's Demand: Pushed for a 3-percentage-point rate cut.
• Powell's Response: Fed cannot cut rates due to Trump's tariffs.
• Tariff Impact: Tariffs have increased prices, limiting the Fed's ability to lower rates.

Economic Concerns

• Inflation Worries: New data shows prices rose in June.
• Wholesale Prices: Remained stable, but experts remain cautious.
• Expert Opinion: Marc Balcer, an investment strategist, warns tariffs will eventually affect consumers.

Bank Earnings

• Big Banks' Performance:
• Bank of America, Morgan Stanley, Goldman Sachs: Reported better-than-expected earnings.
• Stock Reactions: Minimal gains, except Goldman Sachs, which rose nearly 1%.