U.S. Stocks Rise as Trump Eyes New Fed Chair
U.S. stocks saw a slight boost on Thursday. The Dow Jones industrial Average climbed 0.57%, or over 200 points. The S&P 500 adn Nasdaq Composite also gained, by 0.38% and 0.23%, respectively. this uptick is largely due to President Donald Trump’s rumored plans to replace Federal Reserve Chair Jerome Powell.
Trump has been vocal about his dissatisfaction with Powell, especially after the Fed kept interest rates unchanged. Powell recently testified in Washington, and reports suggest Trump is nearing a decision on a new Fed Chair.The Wall street Journal claims Trump could announce his choice this summer. Powell’s term ends in May 2026.
Despite economic challenges, stocks are rising as markets react positively to Trump’s move. The S&P 500 missed a record high on Wednesday, but optimism remains. Cryptocurrencies also gained as the U.S.dollar weakened, partly due to tariff impacts.Improved Middle East relations added to the market’s positive mood.
On the economic front, Thursday’s data showed the U.S. economy contracted by 0.5% in Q1. Initial jobless claims were lower than expected at 236,000. While this suggests the economy isn’t worsening, Wall Street will closely monitor Friday’s Personal Consumption Expenditures report.
