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17.07.202512:28 Forex Analysis & Reviews: Stock market on July 17: SP500 and NASDAQ lifted by Powell speculation

As of yesterday, US stock indices closed higher. The S&P 500 rose by 0.32%, while the Nasdaq 100 added 0.25%. The industrial Dow Jones strengthened by 0.53%.

Exchange Rates 17.07.2025 analysis

The dollar also regained part of Wednesday's losses, while US Treasuries declined following a volatile session triggered by speculation over the future of Federal Reserve Chair Jerome Powell. These rumors, fueled by recent statements and information leaks, added further uncertainty to an already complex economic landscape. Investors reacted sharply to the potential change in the central bank's leadership, fearing possible shifts in monetary policy and their effects on the dollar and government bonds.

Uncertainty surrounding Powell's future is also significantly affecting currency market volatility. Traders are closely watching for any signals that might clarify the administration's plans. Many analysts warn against hasty decisions, emphasizing the need for careful analysis and balanced actions in the current environment.

Today, futures contracts on the S&P 500 and NASDAQ continued their upward momentum after gains during the regular session. Yesterday, President Donald Trump downplayed the likelihood of Powell's imminent dismissal after earlier reports suggested he had discussed the possibility with Congress.

Speculation surrounding Powell hit US markets hard on Wednesday before Trump's clarifications eased concerns. Trump wants lower interest rates, which has been the source of his dissatisfaction with Powell, while New York Fed President John Williams defended the central bank's position, stating it is entirely justified. The Trump administration's ongoing criticism of Powell and the president's repeated remarks that he would only appoint a Fed chair committed to rate cuts have understandably raised concerns about the central bank's future independence.

In tariff-related news, Trump stated he would send letters to over 150 countries, notifying them of tariff rates that could reach 10% or 15%. He also softened his confrontational tone toward China, expressing interest in a high-level meeting with President Xi Jinping and the conclusion of a trade agreement.

Exchange Rates 17.07.2025 analysis

As for the technical picture of the S&P 500, the main task for buyers today will be to overcome the nearest resistance at $6,267. This would help confirm upward momentum and open the path to the next level at $6,276. An equally important objective for the bulls is to gain control above $6,285, which would strengthen their position. In case of a downward move amid fading risk appetite, buyers must assert themselves around $6,257. A breakout below this level would quickly push the instrument back to $6,245 and open the way to $6,234.

*La presente analisi del mercato ha un carattere esclusivamente informativo e non rappresenta una guida per l`effettuazione di una transazione.

Jakub Novak,
Analytical expert of InstaSpot
© 2007-2025
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