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The S&P 500 slipped into negative territory on Thursday after a Bloomberg report suggested that Federal Reserve Governor Christopher Waller could replace Jerome Powell as the next Fed chair. The news added fresh uncertainty to the markets, though rising tech stocks helped limit broader losses. By 12:51 p.m. ET, the Dow Jones Industrial Average was down 328 points, or 0.7%. The S&P 500 dropped 0.2%, while the NASDAQ Composite managed to gain 0.1%.
Waller, a Trump appointee, is reportedly gaining support from the White House due to his focus on forecasting rather than reacting to economic data. His deep understanding of the Federal Reserve’s internal operations is also seen as a major plus. However, the prospect of a Fed leader more closely aligned with Trump’s economic policies has raised concerns about the central bank’s independence.
Apple extended its strong performance, adding to Wednesday’s gains after pledging an additional $100 billion investment in U.S. manufacturing. The announcement brings its total domestic investment to around $600 billion and is seen as both a response to rising trade tensions and a strategic alignment with Trump’s policy goals.
Trade tensions continued to weigh on investor sentiment. President Trump imposed an additional 25% tariff on Indian goods, citing the country’s continued imports of Russian oil. This brought the total U.S. tariff burden on Indian imports to 50%. Trump also proposed a 100% tariff on imported semiconductors, although companies producing chips within the U.S. would be exempt. These measures took effect Thursday, raising fears of a broader global economic slowdown.
Despite trade headwinds, corporate earnings have remained strong. More than 80% of companies that have reported so far have exceeded earnings expectations, according to LSEG data. Hertz shares surged after the company reported its best quarterly performance in nearly two years. ConocoPhillips also rose after beating second-quarter profit estimates thanks to a rise in output. DoorDash jumped after exceeding expectations and issuing a strong forecast, helped by steady demand for food and grocery delivery.
Other notable gainers included Duolingo, which raised its revenue outlook due to increased interest in its AI-powered subscription service, and Peloton, which rallied after forecasting better 2026 revenue and announcing workforce reductions to cut costs. On the downside, Eli Lilly shares fell after its weight-loss drug showed weaker results than a rival treatment from Novo Nordisk. Airbnb dropped after forecasting slower growth for the rest of the year, while Intel shares slipped after Trump called for CEO Lip-Bu Tan to resign over alleged conflicts tied to China.
Firefly Aerospace made a strong public debut, with shares jumping 50% after opening at $70. The space technology firm had priced its IPO at $45, well above expectations. As markets continue to digest political developments, leadership changes, and the final wave of earnings, volatility is expected to remain high.
Notable movers on Thursday include:
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Hertz (HTZ) soared after posting its best quarterly performance in nearly two years, driven by strong profitability.
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ConocoPhillips (COP) gained after beating Q2 profit estimates despite lower oil prices, thanks to increased output.
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DoorDash (DASH) jumped as it beat estimates and forecast strong demand for food and grocery delivery.
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Duolingo (DUOL) rose sharply after it raised its annual revenue forecast, boosted by growing adoption of its AI-based subscription service.
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Peloton (PTON) surged after forecasting better-than-expected 2026 revenue and announcing plans to cut 6% of its global workforce as part of a turnaround effort.
On the downside:
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Eli Lilly (LLY) fell after its weight-loss drug showed weaker results compared to a competing treatment from Novo Nordisk.
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Airbnb (ABNB) dropped following a weaker growth outlook for the second half of the year, despite strong results from other travel firms.
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Intel (INTC) declined after Trump called for CEO Lip-Bu Tan’s resignation, citing alleged conflicts related to China.