July 16, 2025 Stock Market Recap: S&P 500, Nasdaq, and Dow Jones Performance

The S&P 500 rose by 0.32% to close at 6,263.70. The Nasdaq Composite gained 0.26%, reaching 20,730.49 for its ninth record close this year. The Dow Jones Industrial Average added 231.49 points, or 0.53%, finishing at 44,254.78. At its lowest point during the day, the Dow dropped 264.31 points, or 0.6%.

Stocks experienced volatility on Wednesday following reports that President Donald Trump was considering firing Federal Reserve Chairman Jerome Powell. The S&P 500 initially dropped but later recovered when Trump denied the reports, although concerns lingered about the potential dismissal.

A senior White House official informed Republican lawmakers that Trump is likely to remove Powell as Fed chair soon. Reports indicated that Trump had even drafted a letter to fire Powell, which he shared with lawmakers. However, Trump later downplayed the rumors, stating that firing Powell is highly unlikely in the near future.

Trump has been advocating for Powell's removal, urging the Fed to significantly lower interest rates. Powell, however, mentioned that tariffs imposed by the administration have hindered the Fed from implementing monetary policy adjustments. Market experts believe that firing Powell would negatively impact the markets, despite the political implications.

Additionally, recent data raised concerns about inflation and the effects of tariffs on the economy. The consumer price index for June showed an increase from May, while wholesale prices remained unchanged. Analysts noted that the data suggests underlying challenges, especially regarding the impact of tariffs on various sectors.

Bank earnings reports continued, with Bank of America and Morgan Stanley ending slightly lower despite exceeding expectations. Goldman Sachs outperformed estimates, leading to a nearly 1% increase in its share value.

According to the source: CNBC.