Wall Street Today: US Markets Rally as Trump Signals Powell’s Replacement, Fuels Rate Cut Hopes

Dow Jones, Nasdaq, and S&P 500 open higher as investors eye monetary policy shift following Trump’s announcement to replace Fed Chair Jerome Powell amid market optimism for rate cuts.

June 26, 2025 | Wall Street opened on a positive note on Thursday, June 26, 2025, buoyed by growing expectations of a potential interest rate cut, after U.S. President Donald Trump revealed his intention to replace Federal Reserve Chairman Jerome Powell.

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Speaking ahead of the NATO Summit 2025, Trump said, “I know three or four people whom I gotta pick. He (Powell) goes out pretty soon for sure, because I think he is terrible.” The comments triggered investor anticipation of a dovish shift in Fed policy, helping stocks across sectors post early gains.

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Market Snapshot

Dow Jones Industrial Average rose 0.24% at open to 43,084.07 and was trading 0.64% higher at 43,256.34 by 11:32 a.m. (EDT), according to MarketWatch. Top performers included Boeing, Amazon, Goldman Sachs, JPMorgan, Nvidia, and Disney, while Apple, Walmart, Coca-Cola, and Verizon saw minor pullbacks.

The S&P 500 gained 0.33% at open, touching 6,112.09, and later climbed 0.59% to 6,128.37. Enphase Energy, Dell Technologies, Super Micro Computer, and Freeport-McMoRan were among Thursday’s standout gainers.

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The Nasdaq Composite Index also surged, opening 0.44% higher at 20,062.18 and trading 0.65% higher at 20,104.65 around noon. Despite the upward trend, companies like CYNGN, Vor Biopharma, and KWESST Micro Systems emerged as the session’s notable laggards.

What’s Driving the Rally?

Investors are reacting to Trump’s bold signal to overhaul the leadership at the Federal Reserve, which could pave the way for more aggressive rate cuts to stimulate the economy. The move comes as inflation softens and GDP growth sees a minor dip.

Analysts suggest this political shake-up at the Fed could usher in a more accommodative monetary stance, which equity markets are already pricing in.

Meanwhile, the U.S. Senate will still need to confirm any Fed appointments, ensuring a period of speculation and volatility in the days to come.

Sector Focus

The rally extended to financials, with banking stocks like JPMorgan Chase, American Express, and Goldman Sachs trading higher. Tech stocks maintained momentum, as Nvidia and Dell Technologies continued their bullish streak.

Losers were limited to defensive and consumer-heavy names like Procter & Gamble, McDonald’s, and Apple, which saw mild corrections.

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