Equity indexes rose slightly as the dollar fell after Trump reassured markets he was unlikely to fire Fed Chair Powell. Markets calmed after volatility earlier in the day with stocks falling, dollar selling off, and gold prices spiking amid fears of Powell’s removal.

Trump criticized Powell and discussed the idea of replacing him while not completely ruling it out. Powell has faced criticism for not cutting rates sooner, raising concerns about Fed independence and market stability.

Investors remain jittery with concerns about high valuations, earnings season, and ASML’s bearish outlook due to U.S. tariffs uncertainty. Inflation reports show no immediate need for rate cuts, while Powell has limited power in monetary policy changes.

U.S. producer prices were unchanged in June due to tariff-related cost increases offset by weak services. Inflation impact from tariffs remains uncertain, with concerns about depleted inventories and higher costs for goods.

Wall Street closed higher as Dow rose 0.53%, S&P 500 up 0.32%, Nasdaq up 0.26%. Global stocks rose slightly, while European equities fell due to chip sector weakness. Dollar fell but stabilized after immediate Powell concerns eased.

Sterling strengthened, U.S. Treasury yields fell, and oil prices edged lower due to fuel inventory builds and economic impact concerns from U.S. tariffs. Gold prices trimmed gains after Trump denied Powell firing reports. Market uncertainty persists amid Fed independence fears and inflation concerns.

Read more at Yahoo Finance: Equities rise, dollar down with Treasury yields as volatility eases