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Stocks went on a wild ride Wednesday as a White House official indicated President Donald Trump was moving closer to firing Jerome Powell as Federal Reserve chairman, initially knocking down the S&P 500.
The benchmark rebounded as Trump later denied the report, but traders remained concerned he could follow through.
The Dow Jones Industrials hurtled 231.49 points to close Wednesday at 44,254.78
The S&P 500 index recovered 19.94 points to 6,263.76.
The NASDAQ Composite surged 52.69 points to 20,730.49, posting its ninth record close of the year.
A White House official told reporters that Trump said to GOP lawmakers that he would remove Powell as Fed chair. “The President asked lawmakers how they felt about firing the Fed Chair. They expressed approval for firing him. The President indicated he likely will soon,” said the official.
Separately, the New York Times reported that Trump has gone so far to draft a letter for firing Powell and showed it to lawmakers during that meeting. A set timeline for Powell’s dismissal does not appear imminent, however, the official told the media.
For weeks, Trump has been pushing for Powell’s ouster, calling for the Fed to lower rates substantially. On Tuesday, he said the Fed should cut rates by three percentage points.
However, Powell earlier this month confirmed that the central bank would have already eased monetary policy were it not for tariffs imposed by the Trump administration.
Prices for the 10-year treasury gained ground, pushing down yields to 4.45% from Tuesday’s 4.49%. Treasury prices and yields move in opposite directions.
Oil prices restocked 18 cents to $66.70 U.S. a barrel.
Gold prices brightened $18.00 to $3,354.70 U.S. an ounce.
