Trump fortune could get nearly $100M boost as restriction to sell his meme coins are lifted: report
A so-called 'unlock' of Trump meme coins is expected to add nearly $100 million to the president's fortune, according to a report.
Starting Thursday, entities tied to the president will be able to sell 90 million of the $Trump tokens – worth nearly $930 million at Wednesday's price of $10.30, according to crypto research site Messari.
Advertisement
3 A so-called 'unlock' of Trump meme coins this week is expected to add nearly $100 million to the president's fortune.
NurPhoto via Getty Images
Trump's share of the coins will add $93 million to his $6.4 billion fortune, according to Bloomberg. His net worth has not previously included the locked coins' value.
He also has made about $150 million from trading of the meme coin through mid-June, according to an analysis by crypto-risk modeling firm Gauntlet.
The unlock will increase the coin's circulating supply by 45%, after its initial launch in January made 200 million coins available, Bloomberg reported.
Advertisement
The total amount outstanding will reach 1 billion in less than three years. Of those, 800 million were originally locked and held by Trump-linked entities.
A larger supply, however, could sink the meme coin's price.
Like all meme coins, the $TRUMP token has no intrinsic value. It's based on an image of Trump and tied largely to his popularity – making it vulnerable to sharp swings.
Advertisement
Its price soared more than 10% last week after Justin Sun, founder of the Tron blockchain and cryptocurrency, vowed to buy $100 million worth of the coin in a post on X.
Sun is already the meme coin's top holder.
3 President Trump speaks during a White House luncheon on Monday.
AP
His Tron network added the meme coin to its supported tokens this month, following a rush of major crypto exchanges that scrambled to take Trump's coin to market earlier this year.
Advertisement
Sun attended a VIP reception with Trump – where he was gifted a Trump-branded Tourbillon watch – in May when the president hosted an event for the coin's 200 largest holders.
The crypto entrepreneur – who was sued by the Securities and Exchange Commission in 2023 – also serves as an adviser to World Liberty Financial, the Trump family's crypto firm.
The suit charging Sun with fraud and market manipulation was dropped in February.
3 Donald Trump Jr. speaks during The Bitcoin Conference in Las Vegas in May.
AFP via Getty Images
The 800 million locked Trump meme coins are owned by CIC Digital LLC and Fight Fight Fight LLC. The $TRUMP token's website does not state how the coins are split between the LLCs.
Following this week's unlock, 510 million tokens will be made available over the next two years. An additional 200 million coins will start to become available in January.
Cryptocurrency has emerged as a huge moneymaker for the Trump family, adding $620 million to their wealth since Trump won the election in November.
Advertisement
A White House spokesperson said that Trump's assets are being held in a trust managed by his children while he serves his second term, and maintains that none of his business ventures present a conflict of interest.
Trump's sons, Donald Jr. and Eric Trump, who run the family's Trump Organization, are shareholders in crypto miner American Bitcoin, which will be acquired by Gryphon Digital Mining.
The new company could be worth more than $4.5 billion, according to Bloomberg.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
27 minutes ago
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq end higher after Trump's Powell talk sparks volatile trading
US stocks recovered from session lows to end Wednesday's trading session higher after President Trump said he's "not planning" to fire Fed Chair Jerome Powell, taking the air out of new reports emerging suggesting he was close to making that decision. The S&P 500 (^GSPC) rose about 0.3%, while the Dow Jones Industrial Average (^DJI) climbed 0.5%. The tech-heavy Nasdaq (^IXIC) rose 0.3% for its latest record close. Bloomberg reported Wednesday, citing a White House official, that Trump was considering firing Powell "soon," sending stocks lower. But Trump subsequently said in the Oval Office that he wasn't "planning" to do so, despite going on a rant at the Fed chair not lowering interest rates at his preferred pace. "No, we're not planning on doing anything," he told reporters, but added, "We're very concerned." "He's doing a lousy job, but no, I'm not talking about that. Fortunately, we get to make a change in the next eight months or so, and we'll pick somebody that's good," Trump said. Trump also confirmed a report that said he had asked a meeting of Republican lawmakers late Tuesday whether he should fire the chair. He said most of the lawmakers said he should do it. He denied a different report that said he had drafted a letter to fire Powell. Stocks had started Wednesday's session mixed as Wall Street weighed a surprise inflation print and scoured the latest batch of earnings for signs that corporate America is weathering the tariff turmoil. Solid earnings from Bank of America (BAC) and Johnson & Johnson (JNJ) helped ease some Wall Street worry about Trump's cycle of escalating tariff threats. BofA's trading desks benefited from trade policy-driven market gyrations, as did those at fellow banks Morgan Stanley (MS) and Goldman Sachs (GS). Read more: Full earnings coverage in our live blog At the same time, markets took in a wholesale inflation checkup on Wednesday that provided better news on price pressures. The Producer Price Index print for June came in unchanged on a monthly basis and rose 2.3% year over year, below estimates. The release came after the latest Consumer Price Index reading spurred traders to pare bets on Federal Reserve interest rate cuts. Tuesday's CPI report showed inflation accelerated in June. It rose at its fastest year-over-year clip since February, with signs of tariff-driven inflation starting to show up in the data. Read more: The latest on Trump's tariffs Stocks recover to end the trading session higher US stocks recovered earlier losses after President Trump said he wasn't planning to fire Fed Chair Jerome Powell despite multiple earlier media reports that he was moving to do so. The S&P 500 (^GSPC) rose about 0.3%, while the Dow Jones Industrial Average (^DJI) climbed 0.5% to end Wednesday's trading session. The tech-heavy Nasdaq (^IXIC) rose 0.25%. All three major indices had posted declines to hit session lows earlier in the day, reversing initial gains. Trump's NHTSA nominee could step up pressure on Tesla, Waymo President Trump's nominee to run the country's top auto safety agency may bring more scrutiny to technologies like autonomous driving and robotaxis, putting pressure on companies like Tesla (TSLA) and Alphabet's (GOOG) Waymo, Yahoo Finance's Pras Subramanian reports. Subramanian writes: Read the full story here. Rigetti stock soars after unveiling multi-chip quantum computer Rigetti Computing (RGTI) stock climbed nearly 29% Wednesday after the company announced that it built the largest multi-chip quantum computer to date, with half the error rate of its prior, single-chip computer. Shares of Rigetti are up nearly 1,200% since last year, mirroring gains from fellow quantum computing stock D-Wave (QBTS). Meanwhile, IonQ (IONQ) is up roughly 380% over the past year. The latter two rose 2% and 3.8% Wednesday, respectively. Big Tech has unveiled several quantum breakthroughs this year. IBM (IBM) in June said it is building the world's first large-scale quantum computer capable of operating without errors. The computer, called Starling, is set to launch by 2029. Microsoft (MSFT) and Amazon (AMZN) unveiled new quantum computing chips in February. Google (GOOG) released a quantum computing chip called Willow in December, saying the technology "paves the way to a useful, large-scale quantum computer." Stocks endured a wild ride in the second quarter. It was great news for big banks. The second quarter of 2025 was a great time to be a stock trader at one of the country's major banks, Yahoo Finance's Jake Conley reports. Conley writes: Read the full story here. Nvidia, Meta, Google, Microsoft, and other giant tech stocks have one important challenge coming up Large-cap tech stocks will likely soon be forced to meet the moment, Yahoo Finance's Brian Sozzi reports. Sozzi writes: Read the full story here. The bond market is on edge as Trump's threat to fire Powell resurfaces The bond market remains on edge after multiple outlets reported that President Trump was seriously considering firing Federal Reserve Chair Jerome Powell, Yahoo Finance's Allie Canal reports — only for the president to downplay the possibility as stocks fell and Treasury yields jumped. Canal writes: Read the full story here. Bitcoin, crypto stocks rise on renewed optimism for stablecoin legislation Bitcoin (BTC-USD) and crypto stocks bounced back Wednesday as optimism rose over the fate of three cryptocurrency bills that were snagged in the House of Representatives Tuesday. On Wednesday, Republican representative and Financial Services Committee Chairman French Hill told CNBC that the House has the necessary votes to pass the three crypto bills: the CLARITY Act, a market framework bill; the GENIUS Act, tied to stablecoin regulation; and the Anti-CBDC Surveillance State Act, which bans the Federal Reserve from issuing a central bank digital currency directly to individuals. Shares of stablecoin issuer Circle (CRCL) rose nearly 14%, while crypto exchange Coinbase (COIN) saw its stock rise 2.6%. Robinhood (HOOD) rose 3.5%, and Strategy (MSTR) climbed 2.6%. Bitcoin rose 1.4% to nearly $119,000 after hitting a high above $120,000 earlier in the week. Hill's comments came after President Trump said on Truth Social late Tuesday that the GENIUS Act has the support necessary for passage. "I am in the Oval Office with 11 of the 12 Congressmen/women necessary to pass the GENIUS Act and, after a short discussion, they have all agreed to vote tomorrow morning in favor of the Rule," Trump wrote late Tuesday on Truth Social. Trump: Powell does a 'terrible job,' but says 'not talking about' firing Fed chair Just moments after reporting from multiple outlets suggested President Trump was moving closer to firing Federal Reserve Chair Jerome Powell, Trump said he's "not talking about" firing Powell. Speaking to reporters in the Oval Office, Trump was asked about whether he'd try to remove Powell and while he reiterated his view Powell is not doing a good job and should be lowering rates, he's not considering firing the Fed chair, noting that his term is up in May. In response, stocks moved off session lows and were trading little-changed. Dollar crushed as Trump appears to move closer to firing Powell The drumbeat that President Trump will fire Fed Chair Jerome Powell got louder Wednesday, with reporting from CBS News, Bloomberg, CNBC, and The New York Times all adding to the sense that Trump is getting closer to making the unprecedented move. Stocks were lower following the news, but the biggest move in markets was coming from the foreign exchange market, where the dollar was getting crushed against other major currencies. The dollar quickly fell as much as 1% against the Japanese yen, lost about 0.7% against the euro, and fell about 0.5% against the British pound. The dollar index fell about 0.7%. Trump has for some time complained about Powell's lack of aggressive rate cuts this year, saying the Fed chair is "too late," among other barbs. And while the spat between Trump and Powell — who was named Fed chair by Trump during his first term in office — has now spanned multiple administrations, some on Wall Street also see Trump's desire to cut Powell as coming back to aiding his key economic agenda: tariffs. "There is method to President Donald Trump's madness regarding Fed Chair Jerome Powell," Ed Yardeni of Yardeni Research wrote in a note to clients on July 1. "Trump has been hammering Powell almost daily recently because doing so is very effectively hammering the foreign-exchange value of the dollar. Trump wants a weaker dollar to boost US exports and depress US imports. He has said that he favored a weaker dollar many times in the past, but now he has found a way to achieve that: by beating up on Powell." As for whether Trump will be able to fire Powell, the Supreme Court in May issued a ruling that walled off the Federal Reserve from other independent agencies that had their leaders removed by Trump. Stocks sink as Trump moves to fire Powell President Trump asked Republican members of the House of Representatives if he should fire Fed Chair Jerome Powell in the Oval Office on Tuesday night, CBS News reported Wednesday, citing unnamed sources. The New York Times reported that Trump had showed off a draft of a letter firing Powell during the meeting. The Republican representatives voiced approval for such a move, CBS reported. Shortly after the CBS report, Bloomberg reported that Trump is likely to fire Powell soon, citing a White House official. All three major indexes fell after the news to touch lows for the day. The S&P 500 (^GSPC) fell 0.45%, while the Dow Jones Industrial Average (^DJI) fell 0.3%. The Nasdaq Composite (^IXIC) dropped nearly 0.6%. The US Dollar DXY ( fell roughly 0.9% following the news. Meanwhile, bets on Fed rate cuts rose from earlier in the day after weaker-than-expected inflation data out earlier Wednesday morning. As of late Wednesday morning, traders saw a more than 70% chance of the Fed cutting rates in September, versus roughly 56% earlier in the day, according to CME Group. Expectations for Fed rate cuts in September are falling Investor speculation that the Fed will hold rates steady not just this month but also in September is growing. According to the CME Group, traders are pricing in a 44% chance that the Fed will not cut rates in September, up from 30% last week. Investors see a more than 54% probability of a 25 basis point cut in September, down from roughly 66% last week. And traders are betting that there's a slim 1.4% chance that the central bank will cut rates by 50 basis points, down from 4.2% last week. Johnson & Johnson stock climbs after earnings beat Johnson & Johnson (JNJ) stock climbed nearly 5% Wednesday after the drugmaker's latest earnings results topped expectations and the company raised its financial outlook for the year. The pharma giant reported revenues of $23.7 billion, higher than the $22.8 billion expected by Wall Street analysts. Earnings per share came in at $2.77, compared to the $2.66 projected, Yahoo Finance's Anjalee Khemlani reports. The company also raised its revenue guidance for the year to a range between $93.2 billion and $93.6 billion, up from its prior range of $91 billion to $91.8 billion. J&J lifted full-year earnings per share guidance by $0.25 to $10.85. Khemlani writes: Read more about J&J's latest earnings results here. US stocks edge up at the open US stocks inched higher Wednesday morning as investors digested another round of corporate earnings results and a wholesale inflation checkup. The Dow Jones Industrial Average (^DJI) rose about 0.3% after shedding over 400 points on Tuesday, while the S&P 500 (^GSPC) was up nearly 0.2%. The tech-heavy Nasdaq Composite (^IXIC) was just above the flat line after notching a fresh record Tuesday as AI chipmaker Nvidia (NVDA) hit a new high. Shares of Johnson & Johnson (JNJ), Bank of America (BAC), and Goldman Sachs (GS) rose after reporting solid earnings results, while Morgan Stanley (MS) stock fell despite the bank's own earnings report topping Wall Street's projections. Trending tickers: J&J, ASML, Goldman Sachs, SharpLink Gaming Here's a look a the top trending tickers in premarket trading as earnings season kicks off: Read more live coverage of earnings season here. Wholesale prices increase less than expected in June Wholesale prices rose less than expected in June. Wednesday's report from the Bureau of Labor Statistics showed that its producer price index (PPI) — which tracks the price changes companies see — rose 2.3% from the year prior, below the 2.7% seen in May and lower than the 2.5% increase economists had projected. On a monthly basis, prices were flat. Economists had expected 0.2% increase. Excluding food and energy, "core" prices rose 2.6% year over year, below the 3.2% gain seen in May. Economists had expected an increase of 2.7%. Meanwhile, month-over-month core prices were flat below the 0.2% increase economists had expected and the 0.3% gain seen last month. The report follows Tuesday's Consumer Price Index (CPI) report which showed core price increases accelerated to 2.9% in June. Goldman stock gains as trading and dealmaking boosts profits Shares of Goldman Sachs (GS), JPMorgan Chase (JPM), and Citigroup (C) were moving higher in premarket trading on Wednesday after the Wall Street firms reported higher dealmaking and trading revenue this week to kick off earnings season. Yahoo Finance's David Hollerith reports: Read more here. Markets are now ho-hum about tariff threats. Trump and Wall Street disagree about why. Yahoo Finance's Ben Werschkul reports: Read more here. Chip linchpin ASML warns on 2026 growth amid tariff headwinds ASML (ASML, shares slumped almost 8% in premarket trading after the chip industry linchpin said it may not achieve growth in 2026. The warning came even as the world's biggest supplier of chipmaking gear's second quarter bookings topped Wall Street estimates on Wednesday. Reuters reported: Read more here. Gold rises as trade war fears bolster haven asset Gold (GC=F) rose overnight Tuesday as a wave of tariff updates did little to appease flighty investors looking for safe investments. With multiple rocky trade deals on the table, markets have pushed back into the valuable metal which has risen by over 25% this year so far. Bloomberg reports: Read more here. Trump order to open up private investment to retirement plans. President Trump is in the process of signing an executive order that will allow retirement plan providers to invest more heavily in private assets, according to those familiar with the matter. The order should take place within the next few days and will open up retirement plans to riskier investments. Reuters reports: Read more here. Stocks recover to end the trading session higher US stocks recovered earlier losses after President Trump said he wasn't planning to fire Fed Chair Jerome Powell despite multiple earlier media reports that he was moving to do so. The S&P 500 (^GSPC) rose about 0.3%, while the Dow Jones Industrial Average (^DJI) climbed 0.5% to end Wednesday's trading session. The tech-heavy Nasdaq (^IXIC) rose 0.25%. All three major indices had posted declines to hit session lows earlier in the day, reversing initial gains. US stocks recovered earlier losses after President Trump said he wasn't planning to fire Fed Chair Jerome Powell despite multiple earlier media reports that he was moving to do so. The S&P 500 (^GSPC) rose about 0.3%, while the Dow Jones Industrial Average (^DJI) climbed 0.5% to end Wednesday's trading session. The tech-heavy Nasdaq (^IXIC) rose 0.25%. All three major indices had posted declines to hit session lows earlier in the day, reversing initial gains. Trump's NHTSA nominee could step up pressure on Tesla, Waymo President Trump's nominee to run the country's top auto safety agency may bring more scrutiny to technologies like autonomous driving and robotaxis, putting pressure on companies like Tesla (TSLA) and Alphabet's (GOOG) Waymo, Yahoo Finance's Pras Subramanian reports. Subramanian writes: Read the full story here. President Trump's nominee to run the country's top auto safety agency may bring more scrutiny to technologies like autonomous driving and robotaxis, putting pressure on companies like Tesla (TSLA) and Alphabet's (GOOG) Waymo, Yahoo Finance's Pras Subramanian reports. Subramanian writes: Read the full story here. Rigetti stock soars after unveiling multi-chip quantum computer Rigetti Computing (RGTI) stock climbed nearly 29% Wednesday after the company announced that it built the largest multi-chip quantum computer to date, with half the error rate of its prior, single-chip computer. Shares of Rigetti are up nearly 1,200% since last year, mirroring gains from fellow quantum computing stock D-Wave (QBTS). Meanwhile, IonQ (IONQ) is up roughly 380% over the past year. The latter two rose 2% and 3.8% Wednesday, respectively. Big Tech has unveiled several quantum breakthroughs this year. IBM (IBM) in June said it is building the world's first large-scale quantum computer capable of operating without errors. The computer, called Starling, is set to launch by 2029. Microsoft (MSFT) and Amazon (AMZN) unveiled new quantum computing chips in February. Google (GOOG) released a quantum computing chip called Willow in December, saying the technology "paves the way to a useful, large-scale quantum computer." Rigetti Computing (RGTI) stock climbed nearly 29% Wednesday after the company announced that it built the largest multi-chip quantum computer to date, with half the error rate of its prior, single-chip computer. Shares of Rigetti are up nearly 1,200% since last year, mirroring gains from fellow quantum computing stock D-Wave (QBTS). Meanwhile, IonQ (IONQ) is up roughly 380% over the past year. The latter two rose 2% and 3.8% Wednesday, respectively. Big Tech has unveiled several quantum breakthroughs this year. IBM (IBM) in June said it is building the world's first large-scale quantum computer capable of operating without errors. The computer, called Starling, is set to launch by 2029. Microsoft (MSFT) and Amazon (AMZN) unveiled new quantum computing chips in February. Google (GOOG) released a quantum computing chip called Willow in December, saying the technology "paves the way to a useful, large-scale quantum computer." Stocks endured a wild ride in the second quarter. It was great news for big banks. The second quarter of 2025 was a great time to be a stock trader at one of the country's major banks, Yahoo Finance's Jake Conley reports. Conley writes: Read the full story here. The second quarter of 2025 was a great time to be a stock trader at one of the country's major banks, Yahoo Finance's Jake Conley reports. Conley writes: Read the full story here. Nvidia, Meta, Google, Microsoft, and other giant tech stocks have one important challenge coming up Large-cap tech stocks will likely soon be forced to meet the moment, Yahoo Finance's Brian Sozzi reports. Sozzi writes: Read the full story here. Large-cap tech stocks will likely soon be forced to meet the moment, Yahoo Finance's Brian Sozzi reports. Sozzi writes: Read the full story here. The bond market is on edge as Trump's threat to fire Powell resurfaces The bond market remains on edge after multiple outlets reported that President Trump was seriously considering firing Federal Reserve Chair Jerome Powell, Yahoo Finance's Allie Canal reports — only for the president to downplay the possibility as stocks fell and Treasury yields jumped. Canal writes: Read the full story here. The bond market remains on edge after multiple outlets reported that President Trump was seriously considering firing Federal Reserve Chair Jerome Powell, Yahoo Finance's Allie Canal reports — only for the president to downplay the possibility as stocks fell and Treasury yields jumped. Canal writes: Read the full story here. Bitcoin, crypto stocks rise on renewed optimism for stablecoin legislation Bitcoin (BTC-USD) and crypto stocks bounced back Wednesday as optimism rose over the fate of three cryptocurrency bills that were snagged in the House of Representatives Tuesday. On Wednesday, Republican representative and Financial Services Committee Chairman French Hill told CNBC that the House has the necessary votes to pass the three crypto bills: the CLARITY Act, a market framework bill; the GENIUS Act, tied to stablecoin regulation; and the Anti-CBDC Surveillance State Act, which bans the Federal Reserve from issuing a central bank digital currency directly to individuals. Shares of stablecoin issuer Circle (CRCL) rose nearly 14%, while crypto exchange Coinbase (COIN) saw its stock rise 2.6%. Robinhood (HOOD) rose 3.5%, and Strategy (MSTR) climbed 2.6%. Bitcoin rose 1.4% to nearly $119,000 after hitting a high above $120,000 earlier in the week. Hill's comments came after President Trump said on Truth Social late Tuesday that the GENIUS Act has the support necessary for passage. "I am in the Oval Office with 11 of the 12 Congressmen/women necessary to pass the GENIUS Act and, after a short discussion, they have all agreed to vote tomorrow morning in favor of the Rule," Trump wrote late Tuesday on Truth Social. Bitcoin (BTC-USD) and crypto stocks bounced back Wednesday as optimism rose over the fate of three cryptocurrency bills that were snagged in the House of Representatives Tuesday. On Wednesday, Republican representative and Financial Services Committee Chairman French Hill told CNBC that the House has the necessary votes to pass the three crypto bills: the CLARITY Act, a market framework bill; the GENIUS Act, tied to stablecoin regulation; and the Anti-CBDC Surveillance State Act, which bans the Federal Reserve from issuing a central bank digital currency directly to individuals. Shares of stablecoin issuer Circle (CRCL) rose nearly 14%, while crypto exchange Coinbase (COIN) saw its stock rise 2.6%. Robinhood (HOOD) rose 3.5%, and Strategy (MSTR) climbed 2.6%. Bitcoin rose 1.4% to nearly $119,000 after hitting a high above $120,000 earlier in the week. Hill's comments came after President Trump said on Truth Social late Tuesday that the GENIUS Act has the support necessary for passage. "I am in the Oval Office with 11 of the 12 Congressmen/women necessary to pass the GENIUS Act and, after a short discussion, they have all agreed to vote tomorrow morning in favor of the Rule," Trump wrote late Tuesday on Truth Social. Trump: Powell does a 'terrible job,' but says 'not talking about' firing Fed chair Just moments after reporting from multiple outlets suggested President Trump was moving closer to firing Federal Reserve Chair Jerome Powell, Trump said he's "not talking about" firing Powell. Speaking to reporters in the Oval Office, Trump was asked about whether he'd try to remove Powell and while he reiterated his view Powell is not doing a good job and should be lowering rates, he's not considering firing the Fed chair, noting that his term is up in May. In response, stocks moved off session lows and were trading little-changed. Just moments after reporting from multiple outlets suggested President Trump was moving closer to firing Federal Reserve Chair Jerome Powell, Trump said he's "not talking about" firing Powell. Speaking to reporters in the Oval Office, Trump was asked about whether he'd try to remove Powell and while he reiterated his view Powell is not doing a good job and should be lowering rates, he's not considering firing the Fed chair, noting that his term is up in May. In response, stocks moved off session lows and were trading little-changed. Dollar crushed as Trump appears to move closer to firing Powell The drumbeat that President Trump will fire Fed Chair Jerome Powell got louder Wednesday, with reporting from CBS News, Bloomberg, CNBC, and The New York Times all adding to the sense that Trump is getting closer to making the unprecedented move. Stocks were lower following the news, but the biggest move in markets was coming from the foreign exchange market, where the dollar was getting crushed against other major currencies. The dollar quickly fell as much as 1% against the Japanese yen, lost about 0.7% against the euro, and fell about 0.5% against the British pound. The dollar index fell about 0.7%. Trump has for some time complained about Powell's lack of aggressive rate cuts this year, saying the Fed chair is "too late," among other barbs. And while the spat between Trump and Powell — who was named Fed chair by Trump during his first term in office — has now spanned multiple administrations, some on Wall Street also see Trump's desire to cut Powell as coming back to aiding his key economic agenda: tariffs. "There is method to President Donald Trump's madness regarding Fed Chair Jerome Powell," Ed Yardeni of Yardeni Research wrote in a note to clients on July 1. "Trump has been hammering Powell almost daily recently because doing so is very effectively hammering the foreign-exchange value of the dollar. Trump wants a weaker dollar to boost US exports and depress US imports. He has said that he favored a weaker dollar many times in the past, but now he has found a way to achieve that: by beating up on Powell." As for whether Trump will be able to fire Powell, the Supreme Court in May issued a ruling that walled off the Federal Reserve from other independent agencies that had their leaders removed by Trump. The drumbeat that President Trump will fire Fed Chair Jerome Powell got louder Wednesday, with reporting from CBS News, Bloomberg, CNBC, and The New York Times all adding to the sense that Trump is getting closer to making the unprecedented move. Stocks were lower following the news, but the biggest move in markets was coming from the foreign exchange market, where the dollar was getting crushed against other major currencies. The dollar quickly fell as much as 1% against the Japanese yen, lost about 0.7% against the euro, and fell about 0.5% against the British pound. The dollar index fell about 0.7%. Trump has for some time complained about Powell's lack of aggressive rate cuts this year, saying the Fed chair is "too late," among other barbs. And while the spat between Trump and Powell — who was named Fed chair by Trump during his first term in office — has now spanned multiple administrations, some on Wall Street also see Trump's desire to cut Powell as coming back to aiding his key economic agenda: tariffs. "There is method to President Donald Trump's madness regarding Fed Chair Jerome Powell," Ed Yardeni of Yardeni Research wrote in a note to clients on July 1. "Trump has been hammering Powell almost daily recently because doing so is very effectively hammering the foreign-exchange value of the dollar. Trump wants a weaker dollar to boost US exports and depress US imports. He has said that he favored a weaker dollar many times in the past, but now he has found a way to achieve that: by beating up on Powell." As for whether Trump will be able to fire Powell, the Supreme Court in May issued a ruling that walled off the Federal Reserve from other independent agencies that had their leaders removed by Trump. Stocks sink as Trump moves to fire Powell President Trump asked Republican members of the House of Representatives if he should fire Fed Chair Jerome Powell in the Oval Office on Tuesday night, CBS News reported Wednesday, citing unnamed sources. The New York Times reported that Trump had showed off a draft of a letter firing Powell during the meeting. The Republican representatives voiced approval for such a move, CBS reported. Shortly after the CBS report, Bloomberg reported that Trump is likely to fire Powell soon, citing a White House official. All three major indexes fell after the news to touch lows for the day. The S&P 500 (^GSPC) fell 0.45%, while the Dow Jones Industrial Average (^DJI) fell 0.3%. The Nasdaq Composite (^IXIC) dropped nearly 0.6%. The US Dollar DXY ( fell roughly 0.9% following the news. Meanwhile, bets on Fed rate cuts rose from earlier in the day after weaker-than-expected inflation data out earlier Wednesday morning. As of late Wednesday morning, traders saw a more than 70% chance of the Fed cutting rates in September, versus roughly 56% earlier in the day, according to CME Group. President Trump asked Republican members of the House of Representatives if he should fire Fed Chair Jerome Powell in the Oval Office on Tuesday night, CBS News reported Wednesday, citing unnamed sources. The New York Times reported that Trump had showed off a draft of a letter firing Powell during the meeting. The Republican representatives voiced approval for such a move, CBS reported. Shortly after the CBS report, Bloomberg reported that Trump is likely to fire Powell soon, citing a White House official. All three major indexes fell after the news to touch lows for the day. The S&P 500 (^GSPC) fell 0.45%, while the Dow Jones Industrial Average (^DJI) fell 0.3%. The Nasdaq Composite (^IXIC) dropped nearly 0.6%. The US Dollar DXY ( fell roughly 0.9% following the news. Meanwhile, bets on Fed rate cuts rose from earlier in the day after weaker-than-expected inflation data out earlier Wednesday morning. As of late Wednesday morning, traders saw a more than 70% chance of the Fed cutting rates in September, versus roughly 56% earlier in the day, according to CME Group. Expectations for Fed rate cuts in September are falling Investor speculation that the Fed will hold rates steady not just this month but also in September is growing. According to the CME Group, traders are pricing in a 44% chance that the Fed will not cut rates in September, up from 30% last week. Investors see a more than 54% probability of a 25 basis point cut in September, down from roughly 66% last week. And traders are betting that there's a slim 1.4% chance that the central bank will cut rates by 50 basis points, down from 4.2% last week. Investor speculation that the Fed will hold rates steady not just this month but also in September is growing. According to the CME Group, traders are pricing in a 44% chance that the Fed will not cut rates in September, up from 30% last week. Investors see a more than 54% probability of a 25 basis point cut in September, down from roughly 66% last week. And traders are betting that there's a slim 1.4% chance that the central bank will cut rates by 50 basis points, down from 4.2% last week. Johnson & Johnson stock climbs after earnings beat Johnson & Johnson (JNJ) stock climbed nearly 5% Wednesday after the drugmaker's latest earnings results topped expectations and the company raised its financial outlook for the year. The pharma giant reported revenues of $23.7 billion, higher than the $22.8 billion expected by Wall Street analysts. Earnings per share came in at $2.77, compared to the $2.66 projected, Yahoo Finance's Anjalee Khemlani reports. The company also raised its revenue guidance for the year to a range between $93.2 billion and $93.6 billion, up from its prior range of $91 billion to $91.8 billion. J&J lifted full-year earnings per share guidance by $0.25 to $10.85. Khemlani writes: Read more about J&J's latest earnings results here. Johnson & Johnson (JNJ) stock climbed nearly 5% Wednesday after the drugmaker's latest earnings results topped expectations and the company raised its financial outlook for the year. The pharma giant reported revenues of $23.7 billion, higher than the $22.8 billion expected by Wall Street analysts. Earnings per share came in at $2.77, compared to the $2.66 projected, Yahoo Finance's Anjalee Khemlani reports. The company also raised its revenue guidance for the year to a range between $93.2 billion and $93.6 billion, up from its prior range of $91 billion to $91.8 billion. J&J lifted full-year earnings per share guidance by $0.25 to $10.85. Khemlani writes: Read more about J&J's latest earnings results here. US stocks edge up at the open US stocks inched higher Wednesday morning as investors digested another round of corporate earnings results and a wholesale inflation checkup. The Dow Jones Industrial Average (^DJI) rose about 0.3% after shedding over 400 points on Tuesday, while the S&P 500 (^GSPC) was up nearly 0.2%. The tech-heavy Nasdaq Composite (^IXIC) was just above the flat line after notching a fresh record Tuesday as AI chipmaker Nvidia (NVDA) hit a new high. Shares of Johnson & Johnson (JNJ), Bank of America (BAC), and Goldman Sachs (GS) rose after reporting solid earnings results, while Morgan Stanley (MS) stock fell despite the bank's own earnings report topping Wall Street's projections. US stocks inched higher Wednesday morning as investors digested another round of corporate earnings results and a wholesale inflation checkup. The Dow Jones Industrial Average (^DJI) rose about 0.3% after shedding over 400 points on Tuesday, while the S&P 500 (^GSPC) was up nearly 0.2%. The tech-heavy Nasdaq Composite (^IXIC) was just above the flat line after notching a fresh record Tuesday as AI chipmaker Nvidia (NVDA) hit a new high. Shares of Johnson & Johnson (JNJ), Bank of America (BAC), and Goldman Sachs (GS) rose after reporting solid earnings results, while Morgan Stanley (MS) stock fell despite the bank's own earnings report topping Wall Street's projections. Trending tickers: J&J, ASML, Goldman Sachs, SharpLink Gaming Here's a look a the top trending tickers in premarket trading as earnings season kicks off: Read more live coverage of earnings season here. Here's a look a the top trending tickers in premarket trading as earnings season kicks off: Read more live coverage of earnings season here. Wholesale prices increase less than expected in June Wholesale prices rose less than expected in June. Wednesday's report from the Bureau of Labor Statistics showed that its producer price index (PPI) — which tracks the price changes companies see — rose 2.3% from the year prior, below the 2.7% seen in May and lower than the 2.5% increase economists had projected. On a monthly basis, prices were flat. Economists had expected 0.2% increase. Excluding food and energy, "core" prices rose 2.6% year over year, below the 3.2% gain seen in May. Economists had expected an increase of 2.7%. Meanwhile, month-over-month core prices were flat below the 0.2% increase economists had expected and the 0.3% gain seen last month. The report follows Tuesday's Consumer Price Index (CPI) report which showed core price increases accelerated to 2.9% in June. Wholesale prices rose less than expected in June. Wednesday's report from the Bureau of Labor Statistics showed that its producer price index (PPI) — which tracks the price changes companies see — rose 2.3% from the year prior, below the 2.7% seen in May and lower than the 2.5% increase economists had projected. On a monthly basis, prices were flat. Economists had expected 0.2% increase. Excluding food and energy, "core" prices rose 2.6% year over year, below the 3.2% gain seen in May. Economists had expected an increase of 2.7%. Meanwhile, month-over-month core prices were flat below the 0.2% increase economists had expected and the 0.3% gain seen last month. The report follows Tuesday's Consumer Price Index (CPI) report which showed core price increases accelerated to 2.9% in June. Goldman stock gains as trading and dealmaking boosts profits Shares of Goldman Sachs (GS), JPMorgan Chase (JPM), and Citigroup (C) were moving higher in premarket trading on Wednesday after the Wall Street firms reported higher dealmaking and trading revenue this week to kick off earnings season. Yahoo Finance's David Hollerith reports: Read more here. Shares of Goldman Sachs (GS), JPMorgan Chase (JPM), and Citigroup (C) were moving higher in premarket trading on Wednesday after the Wall Street firms reported higher dealmaking and trading revenue this week to kick off earnings season. Yahoo Finance's David Hollerith reports: Read more here. Markets are now ho-hum about tariff threats. Trump and Wall Street disagree about why. Yahoo Finance's Ben Werschkul reports: Read more here. Yahoo Finance's Ben Werschkul reports: Read more here. Chip linchpin ASML warns on 2026 growth amid tariff headwinds ASML (ASML, shares slumped almost 8% in premarket trading after the chip industry linchpin said it may not achieve growth in 2026. The warning came even as the world's biggest supplier of chipmaking gear's second quarter bookings topped Wall Street estimates on Wednesday. Reuters reported: Read more here. ASML (ASML, shares slumped almost 8% in premarket trading after the chip industry linchpin said it may not achieve growth in 2026. The warning came even as the world's biggest supplier of chipmaking gear's second quarter bookings topped Wall Street estimates on Wednesday. Reuters reported: Read more here. Gold rises as trade war fears bolster haven asset Gold (GC=F) rose overnight Tuesday as a wave of tariff updates did little to appease flighty investors looking for safe investments. With multiple rocky trade deals on the table, markets have pushed back into the valuable metal which has risen by over 25% this year so far. Bloomberg reports: Read more here. Gold (GC=F) rose overnight Tuesday as a wave of tariff updates did little to appease flighty investors looking for safe investments. With multiple rocky trade deals on the table, markets have pushed back into the valuable metal which has risen by over 25% this year so far. Bloomberg reports: Read more here. Trump order to open up private investment to retirement plans. President Trump is in the process of signing an executive order that will allow retirement plan providers to invest more heavily in private assets, according to those familiar with the matter. The order should take place within the next few days and will open up retirement plans to riskier investments. Reuters reports: Read more here. President Trump is in the process of signing an executive order that will allow retirement plan providers to invest more heavily in private assets, according to those familiar with the matter. The order should take place within the next few days and will open up retirement plans to riskier investments. Reuters reports: Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
27 minutes ago
- Yahoo
Inflation Week on Wall Street Comes as Tariff Risk Re-Emerges
Investors may be happy to shift some of their focus away from the ongoing tariff saga and back toward economic data and earnings reports. This is a big week, as the June Consumer Price Index (CPI) and Producer Price Index (PPI) hit the tape, while the Q2 reporting season kicks off in earnest with the banks. Then on Thursday, our economic calendar shows that the US Census Bureau will report June's Retail Sales. The Second Half Begins with a Tariff Bang Warning! GuruFocus has detected 4 Warning Signs with NVDA. It's a trove of information for portfolio managers and macro-watchers to gauge, and trade policy news headlines are likely to continue breaking. On July 9, President Trump announced a surprise 50% levy on copper imports, followed by a steep 50% duty on Brazil.[1] Together, it put the Materials sector in focus. Although early, the resource-rich area was the second-best Q3 performer among the 11 S&P 500 groups through last Wednesday, outpacing the Information Technology sector and the high-momentum Industrials space. I.T. has been in the spotlight with NVIDIA (NASDAQ:NVDA) becoming the first company to eclipse a $4 trillion market cap, while Industrials tagged a new all-time high just a handful of sessions ago. So, the small sector has been on a big run...a bit under the radar, too. Will the one-two punch of copper and Brazil duties be a game-changer? It's hard to say right now, but once Q2 earnings reports are in hand, the situation may become clearer. Investors should also mark August 1 (while erasing July 9) on their calendars, as that's when the president's new reciprocal tariff rates may take effect. Interim Data: Rio Tinto's Q2 Production Figures In the here and now, we might capture clues from a metals and mining firm this week. Rio Tinto Group (NYSE:RIO), a $100 billion market cap Materials sector company, will issue its Second Quarter Operations Review on Wednesday. In April, RIO posted strong numbers, but weather impacts were significant over the January through March stretch for the global mining firm. It also took on a substantial amount of debt due to a recent acquisition.[2] Three months ago, the management team noted progress at several of its key mines and a well-supported copper market. This week's update may touch on some tariff-related developments, but a full briefing on the state of the metal and mining industry may not come until its full first-half earnings release, which prints on Wednesday, July 30. Shares have trailed both the S&P 500 and the iShares Global Materials ETF (MXI) so far this year, last week's rally notwithstanding, and heightened macro volatility on the tariff front adds uncertainty to the mix. RIO is a UK-headquartered company, and with a trade deal inked with the US, there is some clarity on that front. The stock notched a seven-week high last Thursday. Macro Spotlight: June CPI and Retail Sales Shifting gears to macro data on the home front, the action gets underway Tuesday morning with June CPI. The big question is: to what extent did tariffs seep into consumer prices last month? At an event on July 10, St. Louis Fed's Alberto Musalem said he expects tariffs to hit inflation beginning in June.[3] Zooming out, May's CPI and PPI reports were relatively tame, offering hope that households and businesses might not feel as much of a pinch from import duties as initially feared. Of course, there was significant stockpiling of goods ahead of so-called Liberation Day, and most of the more punitive reciprocal tariffs have yet to take effect. So, we still won't have complete clarity from June's inflation data alone. What could be more important this week is Retail Sales. There are emerging signs that consumers are tightening their purse strings at least somewhat. Last month, it was reported that May Retail Sales fell by 0.9%, worse than expected, while May's US Personal Spending report revealed the first sequential drop since January.[4] Timelier weekly Johnson Redbook year-over-year retail sales growth has also slowed down. Then, just last week during Amazon's (NASDAQ:AMZN) four-day Prime Day event, first-day sales were said to be down 41% compared to 2024's promo period. An Amazon spokesperson disputed that report, calling it highly inaccurate.[5] Price action in the mega-cap stock seemed to side with the company, not the newsAMZN hovered between $220 and $225, close to its best mark since February. The Policy Impact Together, June CPI and Retail Sales might not be enough to sway the Federal Reserve from keeping its policy rate unchanged at the July 29-30 meeting. Following a solid jobs report for last month and only more unease around tariffs in recent days, Chair Powell may opt for a continued wait-and-see" approach. Still, odds are the Federal Open Market Committee (FOMC) will resume cutting rates in September. Between now and then, the Fed will gather with other central banks in August at the Jackson Hole Economic Policy Symposium hosted by the Federal Reserve Bank of Kansas City. Finally, don't sleep on the PPI report. It crosses the wires on Wednesday morning, between CPI and Retail Sales. Items in the wholesale price report tend to feed more directly into the Personal Consumption Expenditure (PCE) Price Index, the Fed's preferred inflation gauge. Soft inflation and retail sales data would only put more pressure on the Fed to cut rates sooner rather than later. All the while, Powell, whose term as Fed chief ends next May, continues to be berated by President Trump for not easing monetary policy. The Bottom Line Bank earnings roll in this week. The likes of JP Morgan Chase (JPM), Wells Fargo (WFC), Citigroup (C), and Bank of America (BAC) post Q2 numbers mid-week. We'll also get clues from macro bellwether areas, including the mining industry. CPI, PPI, and Retail Sales litter the tape, too, keeping investors on edge. The next few weeks will set the tone for the second half. 1 Trump sets 50% US tariffs on copper, Brazilian imports starting in August, Reuters, David Lawder, Andrea Shalal, Julia Payne, July 10, 2025, First Quarter Operations Review 2025, Rio Tinto, Quarterly Operations Review, 15 April, 2025, Fed's Musalem: Expect Tariffs To Hit Inflation Beginning In June Data, X, LiveSquawk, July 10, 2025, Retail sales fell 0.9% in May, worse than expected, as consumers pulled back, CNBC, Jeff Cox, June 17, 2025, Amazon Disputes Claim Of Plunging Prime Day Sales After Reported 41% Drop, Forbes, Zachary Folk, July 9, 2025, Copyright 2025 Wall Street Horizon, Inc. All rights reserved. Do not copy, distribute, sell or modify this document without Wall Street Horizon's prior written consent. This information is provided for information purposes only. Neither TMX Group Limited nor any of its affiliated companies guarantees the completeness of the information contained in this publication, and we are not responsible for any errors or omissions in or your use of, or reliance on, the information. This publication is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied upon for such advice. The information provided is not an invitation to purchase securities, including any listed on Toronto Stock Exchange and/or TSX Venture Exchange. TMX Group and its affiliated companies do not endorse or recommend any securities referenced in this publication. This publication shall not constitute an offer to sell or the solicitation of an offer to buy, nor may there be any sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. TMX, the TMX design, TMX Group, Toronto Stock Exchange, TSX, and TSX Venture Exchange are the trademarks of TSX Inc. and are used under license. Wall Street Horizon is the trademark of Wall Street Horizon, Inc. All other trademarks used in this publication are the property of their respective owners. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
27 minutes ago
- Wall Street Journal
Stocks End Higher After Trump Plays Down Intentions to Fire Powell
A series of reports indicating that President Trump could attempt to fire Federal Reserve Chair Jerome Powell sparked a roller-coaster day on Wall Street, before major indexes closed the session near records. Major stock indexes slid as much as 0.8% midday after news that Trump told Republican lawmakers that he was likely to attempt to remove Powell from his job soon. The prospect that lower rates would eventually yield higher inflation sparked a selloff in long-dated Treasurys, driving up the 30-year yield around 0.1 percentage point.
