Stock marker today: S&P 500 closes higher after Trump denies plans to fire Powell

Investing.com -- The S&P 500 closed higher Wednesday after President Donald Trump denied reports that he was close to firing Federal Reserve Chairman Jerome Powell. 

At 4:00 p.m. ET, the Dow Jones Industrial Average rose 231 points, or 0.5%, the S&P 500 index gained 0.3%, and the NASDAQ Composite added 0.3% to clinch a fresh closing record of 20,730.49.  

Trump denies reports close to firing Powell

President Trump told reporters he was "not planning anything" related to Powell, denying earlier reports that he would move forward with firing him imminently. Trump, however, did voice his frustration with Powell for keeping rates high and accused him of mishandling a costly renovation of the Fed headquarters.

Wholesale inflation remains unchanged in June   

U.S. producer prices held steady on a monthly basis and grew at a slower annualized pace in June, restrained in part by a decline in travel accommodation services costs that helped offset climbing prices for final demand goods.

In the twelve months through June, the producer price index advanced 2.3%, after rising by 2.7% in May, Labor Department data showed on Wednesday. Month-on-month, the reading stood at 0.0%, slowing from a prior level of 0.3%.

Economists had projected a yearly rate of 2.5% and 0.2% on a monthly basis.

The new report comes after data on Tuesday showed that U.S. consumer prices grew at a faster pace in June, indicating that the impact of President Donald Trump’s aggressive tariff policies may be starting to emerge.

Headline consumer price growth came in at 2.7% in the twelve months to June, compared with expectations of 2.6% and May’s reading of 2.4%. Month-on-month, the figure was 0.3%, up from 0.1% in May and in line with projections.

The Fed’s Beige Book is also due to be published. The report, which is released eight times a year, brings together anecdotal information on current economic conditions, including interviews with businesses, economists, market experts and other sources.

"The Beige Book has taken on added importance in the present environment given all the moving pieces influencing economic data, and it’s likely to reflect continued stagflationary forces in the domestic economic (with growth headwinds and upward pressure on prices from trade friction)," analysts at Vital Knowledge said in a note to clients.

Uncertainty over Trump’s tariffs also remained squarely in play. Trump on Tuesday evening said his threatened 200% tariffs on pharmaceutical imports will come by the month-end, when his other proposed trade levies are set to take effect. 

The president also announced on Tuesday that the U.S. would begin placing a 19% tariff on goods from Indonesia as part of a trade deal with the Southeast Asian nation.

The pact comes after the White House revealed preliminary or framework agreements with the United Kingdom (TADAWUL:4280), China, and Vietnam.

Trump has said more deals are on the way, with the clock ticking down closer to an impending August 1 deadline for his so-called "reciprocal" levies to snap into effect. The White House has said the deadline will not be moved, after it was previously delayed following deep market ructions when Trump first unveiled the duties in April.

Q2 earnings season to pick up 

There are more quarterly results to digest Wednesday, after results on Tuesday from the likes of JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) largely topped estimates, but still received a mixed response.

Bank executives expressed increased caution over the economic outlook for the second half of the year, with JPMorgan CEO Jamie Dimon flagging “significant risks” from trade tariffs, and also warned about the rising fiscal deficit. 

Bank of America (NYSE:BAC) gained after the lender’s profit rose in the second quarter as its trading desks brought in more revenue from tumultuous markets in the second three-month period.

Goldman Sachs (NYSE:GS stock rose after the investment bank’s profit jumped in the second quarter, as turbulent markets lifted equities trading revenue to a record and a pickup in dealmaking boosted investment banking.

Morgan Stanley (NYSE:MS) stock fell despite the banking giant’s profit climbing as market volatility buoyed its trading desk.

Elsewhere, Johnson & Johnson (NYSE:JNJ) stock rose after the pharmaceutical giant lifted its full-year sales forecast, even as headwinds loom from potential U.S. tariffs on some of its imports.

Tesla Inc (NASDAQ:TSLA) climbed 3% after the company announced that it would be rolling out a six-seater Model Y starting this fall. 

Global Payments (NYSE:GPN) Inc (F:GPN) jumped 5% after activist investor Elliot Management reportedly took a state in the payments company .  

Crypto stocks pick up steam ahead of important vote on key stablecoin bills

Crypto-related stocks including Circle Internet Group Inc (NYSE:CRCL), Coinbase Global Inc (NASDAQ:COIN) and Marathon Digital Holdings Inc (NASDAQ:MARA) jumped on rising hopes that both stablecoin bills - the GENIUS Act and CLARITY Act, will be passed this week.  

The bills, which if passed are expected to supercharge the use cases for crypto, failed in a House vote on Tuesday, but are now expected to advance. 

Ambar Warrick and Peter Nurse contributed to this article