Dow Jones Rises Amid Bank Earnings and Fed Tensions

U.S. stocks climbed higher as markets absorbed CPI data and President TRUMP backtracked on remarks regarding Federal Reserve Chair Jerome Powell. The Dow Jones Industrial Average advanced 120 points, or 0.27%, buoyed by robust earnings from major banks. The S&P 500 and Nasdaq posted modest gains of 0.13% and 0.08%, respectively.

Attention shifted to renewed friction between the WHITE House and the Fed. Trump denied reports of plans to dismiss Powell, though he reiterated criticism of the Fed's performance. The President continues to push for rate cuts to stimulate the economy, while the central bank remains cautious amid inflation concerns.

Strong bank earnings provided a counterbalance to inflation fears. The latest CPI data highlighted the impact of tariffs, reinforcing the Fed's hesitance to adjust rates without a significant leadership shift.