US actions range abruptly after Trump’s indecision about saying goodbye to Jerome Powell

• Donald Trump retracted on fire Powell, saying he will wait until the end of his mandate in May 2026.
• Bloomberg and New York Times confirm that Trump has been asking Republican politicians if he should fire Powell.
• The US dollar collapses with the initial news before stabilizing.
• The S&P 500 fell more than 0.5% before recovering after Trump retraction.

The intention of US President Donald Trump to fire the president of the Federal Reserve (FED), Jerome Powell, shook the US stock market in both directions on Wednesday.

The S&P 500 had a good start, climbing almost 0.3% when opening. Then more than 0.5% collapsed around 11:15 am when Bloomberg confirmed a previous CBS report that Trump had met Tuesday night with Republican legislators, asking them if I should fire Powell before the end of the mandate of the Central Bank leader in May 2026, to conclude the day with a profit of 0.35%.

Donald Trump has been angry because Powell has not trimmed interest rates this year, since the president has repeatedly said that he would wait to see how the market responds to the administration’s tariff policy. In addition, Fuentes say that Trump has been looking to use the renewal of the Fed building of 2.5 billion dollars as a cause to fire Powell, pretending that Powell is somehow involved in corruption.

Then, the New York Times reported that Trump had written a letter to say goodbye to President Powell. This news caused the US dollar to collapse even more, and the dollar fell to 1.2%. However, Trump presumably saw what was happening and answered the questions of the reporters around noon that would wait for Powell’s mandate to end.

This news helped US actions recover, and the S&P 500 is now going up a more moderate 0.35% at the time of writing this.

S&P 500 index chart for July 16, 2025 (1 minute candles)

Johnson & Johnson’s profit report (JNJ) In the premarket it has been a point of positivity on an uncertain day. The Personal Care Products provider earned $ 2.77 in Action -adjusted profits (BPA) during the second quarter with revenues of 23.7 billion dollars. These figures were 0.09 and 840 million dollars above the Wall Street consensus, and Johnson & Johnson raised his prospect for the whole year Outlook for both sales and BPA.

Meanwhile, Goldman Sachs (GS) He sold moderately despite offering a huge surplus in the second quarter compared to consensus. The great surplus may have already been discounted due to the gain reports of JPMorgan (JPM) and Citigroup (C) A day before.

Analysts raised their price objectives in NVIDIA (NVDA) and Palantir (PLTR)in both cases citing the proximity to the Revolution of Artificial Intelligence. Needham raised its price objective in NVDA from $ 160 to $ 200, and Mizuho increased its target in PLTR from $ 116 to $ 135.

The June Production Price Index (IPP) remained unchanged in monthly terms, providing a greater possibility that interest rate cuts arrive before.