U.S. Stocks Close Modestly Higher After Trump Denies Plans To Fire Powell

(RTTNews) - Following the mixed performance seen in the previous session, stocks showed a lack of direction throughout much of the trading day on Wednesday. The major averages moved to the upside in the latter part of the session, however, with the tech-heavy Nasdaq reaching a new record closing high.

The major averages all finished the day in positive territory. The Dow advanced 231.49 points or 0.5 percent to 44,254.78, the Nasdaq rose 52.69 points or 0.3 percent to 20,730.49 and the S&P 500 climbed 19.94 points or 0.3 percent to 6,263.70.

Stocks came under pressure in late morning trading following reports President Donald Trump discussed the possibility of firing Federal Reserve Chair Jerome Powell during a meeting with House Republicans.

However, the major averages moved back to the upside after Trump said he's "not planning" on firing Powell, adding, "I think it's highly unlikely, unless he has to leave for fraud."

Trump has repeatedly called for the Fed to lower interest rates and has harshly criticized Powell for failing to follow his demands.

The choppy trading on Wall Street also came following the release of a Labor Department report showing producer prices in the U.S. unexpectedly came in flat in the month of June.

The Labor Department said its producer price index for final demand was unchanged in June after rising by an upwardly revised 0.3 percent in May.

Economists had expected producer prices to increase by 0.2 percent compared to the 0.1 percent uptick originally reported for the previous month.

The report also said the annual rate of producer price growth slowed to 2.3 percent in June from an upwardly revised 2.7 percent in May.

The annual rate of producer price growth was expected to edge down to 2.5 percent from the 2.6 percent originally reported for the previous month.

While the data helped ease inflation concerns, the Fed is still seen as likely to leave interest rates unchanged until September at the earliest.

The Federal Reserve released a separate report showing industrial production in the U.S. increased by more than expected in the month of June.

Among individual stocks, shares of ASML (ASML) moved sharply lower after the semiconductor equipment maker warned it may see no growth in 2026.

Financial giant Morgan Stanley (MS) also moved to the downside despite reporting second quarter results that exceeded analyst estimates on both the top and bottom lines.

Meanwhile, shares of Johnson & Johnson (JNJ) surged after the healthcare giant reported better than expected second quarter results and raised its full-year guidance.

Sector News

Pharmaceutical stocks saw significant strength on the upbeat J&J earnings, driving the NYSE Arca Pharmaceutical Index up by 1.6 percent.

Notable strength was also visible among biotechnology and healthcare stocks, with the NYSE Arca Biotechnology Index advancing by 1.5 percent and the Dow Jones U.S. Health Care Index climbing by 1.2 percent.

On the other hand, energy stocks came as the price of crude oil saw further downside, dragging the Philadelphia Oil Service Index and the NYSE Arca Oil Index down by 1.5 percent and 1.3 percent, respectively.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday. Japan's Nikkei 225 Index and China's Shanghai Composite Index closed just below the unchanged line, while Hong Kong's Hang Seng Index dipped by 0.3 percent.

The major European markets also moved to the downside over the course of the session. While the French CAC 40 Index slid by 0.6 percent, the German DAX Index slipped by 0.2 percent and the U.K.'s FTSE 100 Index edged down by 0.1 percent.

In the bond market, treasuries regained ground after moving notably lower on Tuesday. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 3.4 basis points to 4.455 percent.

Looking Ahead

Trading on Thursday may be impacted by reaction to an avalanche of U.S. economic data, including reports on retail sales and weekly jobless claims.