Today's War Room Trading Recap

📉 Midday Sell‑Off on Powell Panic:
Markets were rattled this morning following reports that President Trump privately discussed firing Fed Chair Jerome Powell—a move investors feared might threaten Fed independence and derail rate stability. The S&P 500 dropped roughly 0.7%, the Nasdaq slid ~0.1%, and the dollar weakened as bond yields jumped.

🧨 Sharp Rebound After Clarification:
By late morning, Trump publicly stated he’s “not planning” to fire Powell, calling the earlier rumor unlikely. That helped the S&P fully erase losses and stabilized the dollar. Markets now sit near flat to slight gains on the session. Investors

🔄 Sector Standouts:

• Bank stocks remain under pressure despite solid Q2 earnings from Morgan Stanley, Goldman Sachs, and Bank of America.

• Chip makers are mixed—ASML dropped ~9% on cautious 2026 forecasts; AMD dipped ~0.5% even after shipments approval. Barron’s

• Defensive names like J&J saw a ~6.5% boost after strong earnings. 

📊 Bond Market & Dollar:
The 10‑year Treasury yield is hovering near ~4.47%, with bonds showing mild volatility from the Powell drama. The dollar initially strengthened but has since pulled back on the rollback news.

⚠️ What’s Next:

• Afternoon focus: Markets will remain sensitive to the Powell saga—any new spin from the White House or Fed could reignite moves.

• Economic data: Keep an eye on the Beige Book release for clues on inflation, which may shape future Fed communication.

✅ Afternoon Playbook