U.S. stocks edged higher on Thursday, with slight gains coming amid bullish sentiment surrounding President Donald Trump’s quest to replace Federal Reserve Chair Jerome Powell.
The Dow Jones Industrial Average rose 0.57%, or over 200 points, while the benchmark S&P 500 gained 0.38%. The Nasdaq Composite was up 0.23% at the open, as investors bet on increased odds of interest-rate cuts by the U.S. central bank.
Trump close to naming Fed chair pick
Much of the market enthusiasm stems from U.S. President Donald Trump, who has increased his criticism of Powell amid the Fed’s decision to hold interest rates steady in recent months. Powell testified before lawmakers in Washington this week, and reports following his comments suggest Trump is getting closer to selecting a new Fed Chair.
Trump is reportedly down to four candidates for Powell’s replacement, and The Wall Street Journal noted the president could name his pick as soon as this summer. Powell’s current term is scheduled to end in May 2026.
Despite this, stocks are up as markets react to Trump’s move.
Economy in focus
While the S&P 500 failed to notch a record closing high on Wednesday, bullish sentiment persists. Cryptocurrencies also edged higher as the U.S. dollar declined to levels last seen in April 2022, partially due to tariff impacts. Easing tensions in the Middle East further contributed to the market’s buoyant mood.
On the economic front, data released Thursday showed the U.S. economy shrank by 0.5% in Q1. Initial jobless claims for the past week came in at 236,000, below the expected 244,000.
Although the data aligns with economists’ view that the economy is not significantly deteriorating, Wall Street will be closely watching Friday’s release of the Personal Consumption Expenditures report.
