Wall Street stocks were turned over on Wednesday after someone in the White House told CNBC that Trump might fire Jerome Powell as a Fed chair. That single comment started chaos.
The S&P 500 initially fell by 0.6% and returned to the green when Trump denies the whole thing.
With a closed bell, the S&P 500 cut down a small 0.1% gain. Also, NASDAQ was able to add 0.1% after tanking nearly 0.8% during the day. The Dow Jones did a slightly better job, gaining 162 points (0.3%), but only after falling over 260 points. The trader was stuck at Limbo. No one knew whether to trust the official rejection or brace due to another bomb.
“If Powell is fired, the market won’t like it,” said Larry Tentareli of Blue Chip Daily Trends Report. “It’s clearly a political hotbed…but overall, most of the large market participants I know I think Powell did a very good job.” Translation? If Trump pulls the trigger, the stock could be wrecked.
Semiconductor names drag high-tech sectors
The technology was not safe either. The tipstock started bleeding, but it wasn’t subtle. The Vaneck Semiconductor ETF has dropped by 0.6% this week, potentially snapping its seven-week winning streak. This will be the worst performance since the eight-week rally ended in March 2019.
ASML got its biggest hit. Shares had fallen 9.5% by noon on Wednesday, already sitting 7% lower per week. This is the worst day for ASML since October 15th, 2024 and the worst week since April. And kicker? This has arrived rear The company beat both top and ultimate expectations in its second quarter results. But the problem is what they said next. I don’t know if they will grow in 2026. Such uncertainty drives investors to the hill.
Other tip names were also criticized. Micron Technology, Marvell Technology, Monolithic Power Systems, Teradyne, and NXP Semiconductor all finished their day with red. Nvidia has cooled a bit after printing its all-time high on Tuesday.
The stocks slipped slightly, but the company has grown 3.4% this week, reaching its second consecutive wins a week for eight consecutive times. AMD has chased the suit with a strong 5% gain over the past week.
Meanwhile, the bank’s revenues came on Tuesday and they looked decent on paper. Goldman Sachs, Morgan Stanley and Bank of America all beat expectations. But they didn’t bother them. Each person traded lower. The market clearly hasn’t bought the story. Or maybe the Fed drama wasn’t important because it steals the spotlight.
Bitcoin recovers and ether begins to erupt
While the stock was whipped, Crypto quickly made a nasty dip before bouncing back. Bitcoin crashed into $115,000 after the house fired down a set of crypto bills late Tuesday night. That vote was a slap in the face for anyone expecting clear rules in the short term. But by Wednesday, BTC had returned to $122,000. The traders weren’t waiting. They bought the dip right away.
Ether, on the other hand, actually looked stronger than Bitcoin. It is now divided into the long-standing reversed head and shoulder patterns that have been formed all year round. Beyond the $2,870 breakout level, you’ll get a $4,375 target. And that’s not just a chart theory here. The momentum will be high. ETH’s 14-day RSI flew from the 30s to the mid-70s in four weeks. In May, that number reached nearly 90, a hit before things cooled down. So the movement we are seeing is sharp and it’s true.
When Ether continues to push and hit its $4,375 target, it will be blown past its December 2023 high and begin testing the top of the 2021 cycle. This completes a multi-year bullish base built on a monthly log chart.
Is it even more interesting? Ether is above Bitcoin. Since its April low, BTC has risen by 60%. ETH? Increased by 130%.
