Markets jump after Powell rebuffs Trump

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The Big Story

Financial markets finished the week on a high note after Federal Reserve Chair Jerome Powell stood his ground against President Trump in a rare joint appearance by the two men Thursday.

The S&P 500 finished 0.4 percent up, and the Dow Jones Industrial Average finished up 208 points or 0.47 percent.

The tech-heavy Nasdaq Composite gained about a quarter of percent to close above 21,108.

Top gainers on the day included Comfort Systems USA, Bel Fuse, Deckers Outdoor Corp. and IES Holdings, according to Morningstar.

The bond market also cooled off Friday. The 10-year Treasury yield finished slightly down after trading higher during the day as did the 30-year.

The bond market has exhibited major stresses this year through Trump’s trade war. Outflows from long-dated U.S. public and private bond funds reached close to $11 billion in the second quarter, according to a June Financial Times analysis using EPFR data.

Friday’s gains followed a confrontation between Trump and Powell on Thursday in which Powell repelled an attack from Trump — this time not on social media but on television.

The Hill’s Tobias Burns has more here.

Welcome to The Hill’s Business & Economy newsletter, I’m Aris Folley — covering the intersection of Wall Street and Pennsylvania Avenue.

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Essential Reads

Key business and economic news with implications this week and beyond:

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Trump to meet with EU leader in Scotland for trade talks

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Volkswagen takes $1.5B profit dent after Trump’s auto tariffs

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The Ticker

Upcoming news themes and events we’re watching:

The Federal Open Market Committee (FOMC) is set to make a decision on interest rates next Wednesday at 2 pm EDT
The Senate is expected to consider its first batch of government funding bills for fiscal 2026 next week.

In Other News

Branch out with more stories from the day:

Crypto lobbying skyrockets under Trump; 27 firms file first-ever lobbying forms

The cryptocurrency lobby rapidly expanded its presence on Capitol Hill in recent months as lawmakers took their first bite at legislation to regulate digital currency, according to disclosures filed this week. At least 27 crypto companies or advocates filed their first-ever lobbying disclosures this year across some 20 firms, reflecting an increasing appetite for influence in a more crypto-friendly Washington.

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Good to Know

Business and economic news we’ve flagged from other outlets:

S&P 500 posts fifth straight record close this week, powered by solid earnings (CNBC)
Tariffs will drive up U.S. prices even with Trump trade deals, experts say (CBS News)
Photos of renovations at the Federal Reserve’s Great Depression-era headquarters (The Associated Press)