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Dow Opens Higher Amid Trade Optimism; Trump Targets Fed Chair Powell as Markets Juggle Rates, Earnings, and Immigration Shock

Bob Elliott: Markets Are Delusional — And Credit Knows ItU.S. stocks opened higher Wednesday as investors digested a flurry of macroeconomic and political developments, from a sweeping U.S.-Japan t

U.S. stocks opened higher Wednesday as investors digested a flurry of macroeconomic and political developments, from a sweeping U.S.-Japan trade deal to pointed criticism of the Federal Reserve by President Donald Trump. Equities rallied out of the gate, with the Dow Jones Industrial Average climbing 224 points, or 0.50%, to 44,726. The S&P 500 rose 23.50 points (0.37%) to 6,333.12, while the Nasdaq Composite advanced 68.68 points (0.33%) to 20,961.40. The Russell 2000 led small-cap gains, up 0.60% at 224.60.

Commodities Edge Lower

In commodities trading, gold futures for August delivery declined $18.10, or 0.53%, to $3,425.60 as of 9:12 AM ET. The yellow metal, often a hedge against inflation and geopolitical risk, slid in response to optimism surrounding global trade talks. Crude oil prices also pulled back, with September contracts down 0.37% to $65.07 a barrel, despite some stabilization in morning trading.

Trump Slams Powell Over Interest Rates

In a post on Truth Social timestamped 9:08 AM ET, President Trump launched a fresh attack on Federal Reserve Chair Jerome Powell, dubbing him “Jerome ‘Too Late’ Powell” for not cutting interest rates. “Housing in our Country is lagging because Jerome ‘Too Late’ Powell refuses to lower Interest Rates,” Trump wrote. “Families are being hurt because Interest Rates are too high… Our Rate should be three points lower than they are, saving us $1 Trillion per year.”

Trump’s commentary underscores rising political pressure on the Fed as borrowing costs remain elevated and economic growth shows signs of strain. Markets have priced in a modest probability of rate cuts before year-end, but Powell and the FOMC have so far held firm amid concerns over persistent inflation.

Earnings Spotlight: GE Vernova Surges on Strong Q2

GE Vernova (GEV) shares jumped 4% in early trading after the energy infrastructure giant beat expectations in its second-quarter report. Revenue rose 12% to $9.11 billion, ahead of forecasts, while adjusted EBITDA climbed over 25% to $770 million. EPS came in at $1.86, well above the $1.67 consensus. Power and Electrification segments drove growth, with robust gas turbine orders and grid investments extending backlog visibility through 2029.

Despite a $165 million loss in its wind segment, GE Vernova raised its 2025 free cash flow outlook to $3–$3.5 billion and now expects revenue toward the high end of its $36–$37 billion range. Management cited ongoing structural tailwinds from AI-fueled electrification and infrastructure demand, reinforcing GEV’s positioning as a central player in the energy transition.

Immigration Crackdown Reshaping Labor Markets

A new report by Apollo Global Management economists Torsten Slok and James Thomas sheds light on the economic impact of heightened immigration enforcement. The study estimates that if 3,000 individuals are deported daily, the U.S. labor supply will shrink by one million people in 2025 alone.

Combined with a drop in unauthorized immigration to near-zero levels, monthly job growth in nonfarm payrolls could slow to just 72,000—a significant deceleration from prior averages. The researchers warned that deportations and restrictions are likely to fuel wage increases in agriculture, construction, and hospitality while simultaneously reducing housing demand.

The findings come amid slowing employment gains, with payroll growth softening significantly in recent months. “Job growth is slowing down,” the report stated, linking the decline directly to immigration policy shifts.

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