Markets Whipsaw on Rumors of Powell’s Ouster
Wednesday was one of those days where Wall Street couldn’t decide whether to panic or shrug. A CNBC report—citing an unnamed White House source—claimed Trump was considering firing Fed Chair Jerome Powell. The reaction was instant. The S&P 500 dropped 0.6% in minutes, the Nasdaq nearly 0.8%, and the Dow plunged over 260 points. Then, just as quickly, Trump denied it. Stocks clawed back, but the damage was done. By closing, the S&P eked out a 0.1% gain, the Nasdaq matched it, and the Dow finished up 162 points. Not exactly a victory lap.
Larry Tentarelli of Blue Chip Daily Trend Report put it bluntly: “The markets would not like it if Powell was fired.” He added, somewhat cautiously, that most big players think Powell’s done “a very good job.” Translation? Firing him could spell trouble. The whole thing felt like a warning shot—markets hate uncertainty, and this was uncertainty on steroids.
Chip Stocks Take a Beating
Tech wasn’t spared. Semiconductor stocks, which had been on a tear, suddenly looked shaky. The VanEck Semiconductor ETF slid 0.6% this week, threatening to end a seven-week winning streak. ASML led the drop, cratering 9.5% at one point—its worst day in months—despite beating earnings expectations. Why? The company hinted that 2026 growth might stall. Investors bolted at the first whiff of doubt.
Micron, Marvell, and NXP Semiconductor all followed suit, closing lower. Even Nvidia, fresh off a record high, cooled slightly—though it’s still up 3.4% for the week. AMD, meanwhile, rallied 5%. The takeaway? Chip stocks are volatile even on good days, and Wednesday wasn’t a good day.
Bank Earnings Ignored Amid Fed Drama
You’d think solid bank earnings would matter. Goldman Sachs, Morgan Stanley, and Bank of America all beat estimates Tuesday. But their stocks dipped anyway. Maybe the numbers weren’t dazzling enough, or maybe the Powell rumors sucked up all the oxygen. Either way, it was a reminder that earnings season can get overshadowed—fast.
Crypto’s Wild Ride
Bitcoin took a nosedive to $115,000 late Tuesday after the House rejected a crypto regulation bill. But by Wednesday, it bounced back to $122,000. Traders, it seems, are still quick to buy dips. Ether, though, was the real story. It broke out of a technical pattern that’s been forming all year, suggesting a rally toward $4,375. Since April lows, ETH’s up 130%—double Bitcoin’s 60% gain.
The crypto market’s resilience is striking. Even with regulatory setbacks, the momentum hasn’t stalled. Whether that lasts is anyone’s guess, but for now, traders aren’t waiting around to find out.
