Equities Rise Intraday as Traders Monitor Fed Chair Race

02:19 PM EST, 01/16/2026 (MT Newswires) -- US benchmark equity indexes were higher intraday as markets evaluated shifting dynamics in the race to replace Jerome Powell as Federal Reserve chair.

The S&P 500 and the Nasdaq Composite were up 0.2% each at 6,956.1 and 23,571.8, respectively, after midday Friday. The Dow Jones Industrial Average rose 0.1% to 49,490.3. Among sectors, real estate paced the gainers, while utilities led the decliners.

US Treasury yields were higher, with the 10-year rate up 5.7 basis points at 4.22% and the two-year rate rising three basis points to 3.59%.

Yields moved higher after President Donald Trump said he might not want National Economic Council Director Kevin Hassett as the next Fed chair, The Wall Street Journal reported.

Prediction markets showed that former Fed Governor Kevin Warsh moved ahead in the race for Fed chair following Trump's comments, according to the report.

Jerome Powell's term as chair of the US central bank is set to end in May.

Separately, Trump -- who is keen on taking control of Greenland -- said he could hit countries with tariffs "if they don't go along with Greenland," CNBC reported. "We need Greenland for national security."

Fed Vice Chair for Supervision Michelle Bowman said the central bank should remain ready to adjust monetary policy to bring it closer to neutral "absent a clear and sustained improvement" in the labor market.

"We should also avoid signaling that we will pause without identifying that conditions have changed," Bowman said. "Doing so will indicate that we are not attentive or responsive to the recent and expected path of the labor market."

West Texas Intermediate crude oil was up 1.2% at $59.92 a barrel intraday.

"Oil prices gained as supply risks remained in focus despite the receding likelihood of a US military strike against Iran," D.A. Davidson said in a note.

In company news, Qnity Electronics (Q) shares were up 5.6%, the third-best performer on the S&P 500, as the company affirmed its 2025 financial outlook.

PNC Financial Services (PNC) was among the top gainers on the S&P 500, up 3.8%, after the lender posted fourth-quarter results above Wall Street's estimates.

Power company shares were down intraday following news reports that the Trump administration is pushing for technology firms to shoulder the costs of new power plants in connection with the artificial intelligence data center construction surge.

Constellation Energy (CEG) shares slumped 11%, the worst performer on the S&P 500. Vistra (VST) slid 7.3%, while NRG Energy (NRG) dropped 5%.

In economic news, US industrial production increased more than expected in December, led by a rebound in utilities, according to Fed data.

"The industrial side of the economy continues to expand, with signs that manufacturing is picking up," BMO said in a note.

Homebuilder confidence in the US unexpectedly fell this month amid persistent affordability challenges for buyers and increasing construction costs, data from the National Association of Home Builders and Wells Fargo showed.

"While the upper end of the housing market is holding steady, affordability conditions are taking a toll on the lower- and mid-range sectors," NAHB Chairman Buddy Hughes said. "Buyers are concerned about high home prices and mortgage rates, with down payments particularly challenging given elevated price to income ratios."

Gold was down 0.5% at $4,599.10 per troy ounce, while silver declined 3.7% to $88.94 per ounce.

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