US Stocks Waver as Powell Firing Rumors Subside

Futures Dip Amidst Fed Chief Speculation and Upcoming Earnings

U.S. stock futures edged lower overnight following a trading session marked by volatility, as President Donald Trump publicly addressed and downplayed rumors of dismissing Federal Reserve Chair Jerome Powell.

Market Rebounds on Presidential Reassurance

Wall Street experienced an initial downturn after a White House official suggested Trump was “likely will soon” fire Powell. Reports from The New York Times indicated the President had even prepared a letter for Powell‘s resignation to share with House Republicans. However, equities recouped losses as Trump later stated he was “not planning on doing it,” though he did not “rule out anything.”

Futures tied to the Dow Jones Industrial Average decreased by 82 points, a 0.18% drop. Both the S&P 500 and Nasdaq 100 futures saw declines of approximately 0.2%.

During the regular Wednesday trading, the S&P 500 climbed 0.32%, while the Nasdaq Composite gained 0.26%. The Dow Jones Industrial Average registered a more substantial increase, rising 231.49 points, or 0.53%.

Analyst Sees Market Moving Past Fed Uncertainty

Market watchers suggest the recent rebound indicates investor confidence that the potential ousting of Powell may not significantly disrupt markets. Michael Green, chief strategist at Simplify Asset Management, commented on the situation.

“The only real piece of information, I would argue, that you got today is that firing Powell is not that big of a deal.”

—Michael Green, Chief Strategist, Simplify Asset Management

Green believes investors will increasingly focus on upcoming corporate earnings reports as the primary market driver in the near term. Companies such as Taiwan Semiconductor Manufacturing, Travelers, GE Aerospace, U.S. Bancorp, and Citizens Financial Group are slated to release their earnings figures.

“I would be very surprised if we don’t get relatively positive reports out of the tech leaders. Not impossible, but surprised. Overall, that would suggest that the markets are going to experience some relief associated with earnings season not being as bad as people think,” Green added.

Key Economic Data on Deck

Looking ahead to Thursday’s trading, market participants will be closely monitoring weekly jobless claims, the latest retail sales data for June, and the nation’s export and import price indexes from last month.

The focus on earnings comes as corporate profit margins in the S&P 500 are projected to grow by 4.2% year-over-year in the second quarter of 2025, according to Refinitiv data (Refinitiv, August 2025).