Wall street stays near record levels: Markets stay resilient despite Trump-Powell tension; corporate results mixed

Wall Street remained near record high on Thursday following upbeat US economic data and a mixed batch of corporate earnings. The S&P 500 was nearly flat in early trading, holding just below its all-time high from last week.

The Dow Jones Industrial Average rose by 105 points, or 0.2%, while the Nasdaq Composite edged up 0.1% after setting a record high on Wednesday.The session followed a volatile Wednesday, when US President Donald Trump said he had discussed the “concept” of firing federal Reserve Chair Jerome Powell, though he added it was unlikely. While such a move could push the Fed toward rate cuts, it would also raise concerns about the central bank’s independence in managing inflation, according to AP.PepsiCo shares jumped 6.6% after the company posted better-than-expected revenue and profit, maintaining its April forecast despite tariff-driven cost pressures and reduced consumer spending. United Airlines surged 6.4% after beating quarterly profit estimates and reporting a pickup in demand since early July. The airline said it expected fewer economic uncertainties to impact performance for the rest of the year.

Lucid Group soared 25.3% after announcing Uber’s plan to deploy over 20,000 of its vehicles in a robotaxi program using autonomous technology from Nuro. The service is set to launch next year in a major US city. Uber, which plans to invest hundreds of millions in both Lucid and Nuro, saw its stock slip 0.1%.Chip stocks also benefited from Taiwan Semiconductor Manufacturing Co's strong earnings report, cited by AP. The company's US-listed shares rose 2.2% after it reported a 61% jump in quarterly net income, driven by robust demand from AI and other tech sectors.On the downside, Abbott shares fell 6.1% despite narrowly beating analyst expectations. The company revised down the upper end of its revenue growth forecast for 2025. Elevance Health tumbled 9.2% after missing profit estimates and lowering its 2025 forecast due to higher medical costs in its affordable care act segment and other issues.Economic reports released Thursday showed resilience in the US economy. Retail sales rose more than expected in June, supported by steady consumer spending and a strong labor market.

Jobless claims fell, suggesting limited layoffs, while a separate report showed unexpectedly strong growth in mid-Atlantic manufacturing.These positive signals could support the Federal Reserve’s current stance of holding interest rates steady. The central bank has paused rate changes this year after cutting them at the end of 2024. Fed Chair Powell has emphasized the need for more economic data, especially around tariffs and inflation, before making further moves.The two-year Treasury yield, which reflects expectations for Fed policy, ticked up to 3.89% from 3.88% late Wednesday. In contrast, the 10-year yield slipped to 4.44% from 4.46%, showing some easing in long-term rate expectations.Yields had briefly jumped on Wednesday after Trump’s comments about Powell, but calmed after he clarified he was unlikely to remove the Fed chair. A less independent Fed could lower short-term rates but risks allowing inflation to rise, a concern for long-term bond investors