Nasdaq Extends Record Run as Trump Denies he Plans to Fire Fed's Powell

05:19 PM EDT, 07/16/2025 (MT Newswires) -- US equities finished higher Wednesday, propelling the Nasdaq Composite to a new high after President Donald Trump denied that he was planning to fire Federal Reserve Chair Jerome Powell soon.

The Dow Jones Industrial Average rose 0.5% to 44,254.8, while the S&P 500 climbed 0.3% to 6,263.7. The Nasdaq advanced 0.3% to 20,730.5, setting a fresh record closing high. Most sectors ended in the green, led by health care, while energy saw the biggest drop.

Trump "likely will soon" remove Powell as Fed chair, CNBC reported, citing a senior White House official. However, Trump later said it is "highly unlikely" he will fire Powell in the near future.

"No, we're not planning on doing it," Trump reportedly said, adding that he doesn't "rule out anything."

Trump continued criticizing Powell. "He's doing a lousy job," Trump said. "Fortunately, we get to make a change in the next ... eight months or so, and we'll pick somebody that's good."

Trump has repeatedly called on the Fed to lower interest rates.

US Treasury yields were lower, with the two-year rate decreasing 6.3 basis points to 3.90% and the 10-year rate losing 3.6 basis points to 4.45%.

In economic news, US producer prices remained unchanged last month amid an increase in wholesale costs of goods and a decline in the services component, the Bureau of Labor Statistics reported, a day after data showed an uptick in consumer inflation.

"Softening demand for travel weighed heavily on the producer price index in June, keeping the headline and core measures unchanged," Oxford Economics said. "Tariff-exposed goods such as household appliances posted strong gains, but apparel and toys were mostly unchanged."

US economic activity rebounded between late May and early this month, though concerns about rising cost pressures grew, the Fed said in its Beige Book.

"Uncertainty remained elevated, contributing to ongoing caution by businesses," the latest central bank document showed.

Industrial production rose more than expected in June to mark the first gain in four months as utilities' output swung into positive territory, data from the Fed showed.

Mortgage applications in the US plunged last week as home loan rates rose amid renewed worries over tariffs, the Mortgage Bankers Association said Wednesday.

West Texas Intermediate crude oil was down 0.3% at $66.70 a barrel in Wednesday late-afternoon trade.

In company news, Johnson & Johnson (JNJ) raised its full-year outlook as the healthcare products conglomerate recorded better-than-expected second-quarter results. The company's shares jumped 6.2%, the top gainer on the Dow and the second-best performer on the S&P 500.

Omnicom (OMC) was among the best performers on the S&P 500, up 4.6%. The company delivered a second-quarter beat late Tuesday.

Morgan Stanley (MS) and Goldman Sachs (GS) posted stronger-than-expected second-quarter results Wednesday, while Bank of America's (BAC) results were mixed. Morgan Stanley (MS) shares fell 1.3%, while Goldman rose 0.9%. Bank of America's (BAC) shares were down 0.3%.

Ford Motor (F) said it will spend about $570 million to remedy a fuel leak issue in certain vehicles that are being recalled in the US. The automaker's shares fell 2.9%.

Gold was up 0.6% at $3,355.6 per troy ounce, while silver was nearly flat at $38.13 per ounce.

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