Wall Street Closes Higher with Dow Up 0.5%, Nasdaq Hits Record Amid Trump Reports on Fed Chair Powell Firing

Wall Street benchmarks closed modestly higher on July 16, 2025, with the Nasdaq Composite reaching a new record high despite a volatile trading session triggered by reports that President Donald Trump might fire Federal Reserve Chair Jerome Powell. The Dow Jones Industrial Average rose 0.5%, the S&P 500 increased 0.3%, and the Nasdaq Composite also gained 0.3%. Earlier in the day, stocks had been rising modestly following a better-than-expected inflation update. However, midmorning news of a potential Powell dismissal caused the S&P 500 to drop as much as 0.7% before recovering. Market reactions to the news were described as a test run of the potential impact of such a move, resulting in volatility but not the severe sell-off some investors had anticipated.