Stock Market Update Wednesday July 16, 2025
- Jul 16, 2025
- 4 min read
Stock Market Update Wednesday July 16, 2025 Markets opened on a strong note, buoyed by a cooler-than-expected Producer Price Index (PPI) print, which reinforced hopes of a disinflationary trend. However, the early optimism was short-lived. Mid-morning, an unverified report emerged alleging that Federal Reserve Chair Jerome Powell could be “soon” removed from office. The rumor triggered a swift risk-off move, with equities retreating sharply — the S&P 500 briefly dipped to 6,200. Roughly 30 minutes later, the report was officially denied, catalyzing a relief rally. Equities rebounded aggressively into the close, finishing solidly in the green.
On the day:
S&P 500 +0.3%
Nasdaq 100 (QQQ) +0.1%
Russell 2000 (IWM) +1.1%
Away From Stocks: In fixed income, Treasury yields initially declined following the soft PPI data, but spiked amid the Powell headlines, with notable volatility on the long end of the curve. After the rumor was debunked, yields retraced some of their gains, and the 10-year yield (US10Y) settled at 4.46%. The U.S. dollar weakened, with the DXY closing at 98.30. It's likely the dollar and Treasury complex would have seen a more constructive session had the Powell-related disruption not occurred. Meanwhile, volatility ticked up, with the VIX closing at 17.15. Both crude oil and gold edged modestly higher on the session.
Recent Trends in Inflation and Policy Implications
Trueflation data indicated that consumer price pressures accelerated into June, but have since moderated. This cooling trend aligns with one-year inflation expectations tracked by both the Conference Board and the Federal Reserve, which continue to drift lower. While new tariffs may exert upward pressure on specific prices, these are not inflationary in the conventional monetary policy sense.
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