Stocks Rise as Powell Says Economy Is Holding Up: Markets Wrap

Assurances by Jerome Powell that the economy remains sound and the Federal Reserve won’t be forced into rash action by Donald Trump’s trade war bolstered markets, lifting stocks, bonds and the dollar. Equities were also aided by prospects for looser rules on chip exports.

While warning that risks are growing of higher inflation and slowing growth, Powell calmed investors after the Federal Open Market Committee left interest rates unchanged. The S&P 500 halted a two-day slide, led by chipmakers as Bloomberg News reported that the Trump administration plans to rescind Biden-era curbs for the industry. Swap traders kept betting on at least three Fed reductions in the remainder of 2025.