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New York Stock Exchange / Reuters-Yonhap News

The New York stock market saw major swings on July 16 (local time) amid rumors that Federal Reserve Chair Jerome Powell might be dismissed. Markets initially fell but rebounded after U.S. President Donald Trump denied the speculation.

The Dow Jones Industrial Average closed at a record high of 44,254.78, up 231.49 points (0.53%). The S&P 500 rose 19.94 points (0.32%) to 6,263.70, while the tech-heavy Nasdaq gained 52.69 points (0.25%) to end at 20,730.49.

Markets opened strong but turned downward as reports surfaced about Trump potentially firing Powell. According to CBS and other U.S. media outlets, Trump had asked Republican lawmakers during a closed-door meeting the previous day whether they would support removing Powell, and received favorable responses.

However, when asked later at the White House about the possibility of Powell’s dismissal, Trump said, “It’s very unlikely,” calming investor fears and restoring market stability.

Analysts warn that Powell’s premature removal could be interpreted as a blow to the Federal Reserve’s independence, potentially triggering negative ripple effects in global markets.

“Fed independence is crucial to the broader economy,” said Dylan Bell, Chief Investment Officer at Calbay Investments. “The market’s immediate reaction to the initial reports reflects just how significant this issue is.”