Netflix and TSMC earnings in focus after Powell row

Markets steadied on Thursday following Wall Street’s volatile session sparked by renewed doubts over Federal Reserve Chair Jerome Powell’s future, with President Trump confirming he discussed the idea of Powell resigning. European futures edged up, while Asia remained muted and Wall Street futures slipped ahead of major earnings from Netflix and TSMC—expected to report record quarterly profits. In the UK, attention turned to May jobs data after June inflation rose to 3.6%.

Equities

The FTSE 100 fell 0.1% on Wednesday, while the FTSE 250 dropped 0.4%, as late-session nerves around the independence of the US Federal Reserve unsettled investors. A report suggesting President Trump intended to fire Fed Chair Jerome Powell led to sharp market moves, although the White House later denied it. Earlier in the session, UK stocks had shown some strength despite news that annual inflation rose unexpectedly to 3.6% in June, the highest in over a year.

AstraZeneca slipped 0.5% after its late-stage trial of anselamimab, a treatment for AL amyloidosis, failed to meet its primary goal. Meanwhile, Diageo rose 0.5% after announcing the departure of CEO Debra Crew. Finance chief Nik Jhangiani will take over as interim CEO.

Rio Tinto gained 1.2% following strong quarterly production figures. The company delivered its best second-quarter iron ore output since 2018 and confirmed the promotion of iron ore head Simon Trott to the top job.

In the US, markets were volatile but ended higher after President Trump denied plans to sack Jerome Powell. The S&P 500 rose 0.32% to 6,263.70, the Dow climbed 0.53% to 44,254.78, and the Nasdaq edged up 0.26% to close at 20,730.49, its fifth record in six sessions. However, all three indices briefly fell more than 1% earlier in the day following reports of Powell’s potential removal.

Johnson & Johnson rose 6.2%, the second-best performer on the S&P 500, after halving its projected tariff-related costs and lifting its full-year guidance. Goldman Sachs added 0.9% after reporting a 22% jump in earnings. By contrast, Bank of America and Morgan Stanley slipped 0.3% and 1.3%, respectively, despite both posting higher profits.

Nvidia came under pressure following a recent rally. Its shares lost ground after enthusiasm faded over news that it would be allowed to sell its H2O AI chips in China. Semiconductor stocks more broadly also declined, with the Philadelphia Semiconductor Index down 0.4% after hitting a 12-month high the day before.

Forex & Commodities

The dollar index fell 0.25% on Wednesday to 98.34 after a brief period of sharp losses when reports emerged that President Trump might sack Federal Reserve Chair Jerome Powell. Trump later denied the reports, saying it was “highly unlikely” Powell would be removed unless there were grounds such as fraud.

The euro gained 0.3% to $1.1633, having touched $1.1721 earlier in the session. The dollar dropped 0.7% against the yen to 147.82. Sterling was 0.24% higher at $1.3411.

Gold prices eased on Thursday as the dollar stabilised. Spot gold fell 0.2% to $3,340.79 an ounce. The SPDR Gold Trust, the largest gold-backed ETF, reported a 0.33% increase in holdings to 950.79 tonnes. Spot silver was flat at $37.98, platinum rose 0.2% to $1,419.67, and palladium edged down 0.1% to $1,230.14.

Oil prices ended slightly lower on Wednesday. Brent crude slipped 0.3% to $68.52 a barrel, while US WTI fell 0.2% to $66.38. A weekly EIA report showed US gasoline stocks rose by 3.4 million barrels and distillates by 4.2 million, outweighing a 3.9 million-barrel drop in crude. Demand for petrol eased, with product supplied falling by 670,000 barrels per day to 8.5 million. Meanwhile, drone attacks in Iraq’s Kurdistan region cut production by up to 150,000 barrels per day.