US stocks closed moderately with the Nasdaq hitting a new record, despite the market volatility following rumors that President Donald Trump wants to fire Federal Reserve (Fed) Chairman Jerome Powell.
Trump immediately denied the rumors, but continued to criticize Powell for not cutting interest rates as expected.
This situation sparked investor concerns that Trump may fire Powell before his term ends in May next year, following criticism of the delay in cutting interest rates.
The Dow Jones industrial average rose 0.53% to 231.49 points, the S&P 500 jumped 0.32% to 19.94 points, while the technology-focused Nasdaq rose 0.26% to 52.69 points.
In other developments, the producer price index (PPI) remained stable in June with a slower annual increase, due to a decrease in the cost of accommodation services that offset the increase in the consumer price index (CPI).
On a year-over-year basis, the PPI index rose to 2.3%, down from 2.7% recorded in May, while on a monthly basis it remained unchanged at 0.0% from 0.3% previously.
The preliminary US consumer price index (CPI) report showed a five-month increase in June to 2.7%, which could dampen hopes for a larger interest rate cut.
