Stock Market Soars Amid Fed Drama and CPI Chaos

U.S. stocks are riding high as the market chews on the latest CPI data and President Trump flip-flops on his Fed Chair smackdown.

On Wednesday, July 16, Wall Street was buzzing, with the Federal Reserve once again stealing the spotlight. The Dow Jones Industrial Average shot up 120 points, a sweet 0.27% gain, thanks to killer earnings from the big U.S. banks. The S&P 500 and Nasdaq weren't far behind, posting more modest gains of 0.13% and 0.08%, respectively.

But it wasn't all smooth sailing. Traders were on the edge of their seats watching the fireworks between the White House and the Federal Reserve. President Trump threw everyone a curveball on July 16, denying he ever planned to fire Fed Chair Jerome Powell. Yet, he didn't hold back, slamming Powell for doing a "terrible job."

Trump's been relentless, pushing the Fed to slash interest rates to juice up the economy and send the stock market into orbit. The White House even took a jab at the central bank over a whopping $2.5 billion renovation project for two buildings in Washington.

But the Fed's not budging, worried sick about inflation. The latest CPI data only stoked those fears, showing that Trump's tariffs are starting to hit consumers hard. Unless there's a major shakeup at the Fed, rate cuts seem like a pipe dream.

Big Banks Rake in Cash Despite Inflation Jitters

The stock market got a boost from the big banking beasts, with Goldman Sachs, Bank of America, and Morgan Stanley dropping earnings bombs that blew past expectations. These giants also reported gobbling up more market share, thanks to sizzling loan growth.

It looks like the current chaos is playing right into the hands of these financial titans with their deep roots in capital markets. Goldman Sachs is up a jaw-dropping 22% year to date, while JPMorgan's not far behind with a 19% gain over the same stretch.