Fed Fight Is Ramping Up - Heard on the Street Recap -- WSJ

Dow Jones04-16 05:45

By Heard Editors

Stocks hit new records. The S&P 500 index closed above 7000 for the first time, rising 0.8% on Tuesday. The Nasdaq Composite Index reached a new all-time high for the first time since October, adding 1.6%. The Dow Jones Industrial Average slipped though, shedding 72 points, or 0.2%.

Big banks described "resilient" consumers. New reports from Bank of America and Morgan Stanley were strong. Bank of America reported a 17% profit jump, and shares rose 1.8%.

Investors are looking beyond war risk. Oil prices ended the day about flat, with crude oil futures around $91. President Trump declared that the Iran war is "very close to over" as regional mediators pushed for a cease fire extension.

Trump's feud with Jerome Powell reignited. The president said he would fire the Federal Reserve chair if he doesn't resign when his term ends. Powell's term as Fed chair ends in a month. However, he has the option to remain as a voting member of the Fed's board until 2028. Last month, Powell said he had "no intention of leaving" the Fed until a Trump administration investigation of the Fed ends.

Treasury yields were little changed. The bond market mostly shrugged off the president's comments. The ten-year Treasury yield rose just slightly in afternoon trading, to about 4.28%.

This analysis comes from the Journal's Heard on the Street team. Subscribe to their free daily afternoon newsletter here.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

April 15, 2026 17:45 ET (21:45 GMT)

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