🔍 What’s Driving Markets Today

1. Fed Shake-Up Sparks Dollar Slide
   Rumors that President Trump considered firing Fed Chair Powell led to a 0.6% drop in the U.S. dollar, with short-term Treasury yields falling amid concerns over central bank independence. Equities initially dipped, then reboundedYahoo Finance+15Barron’s+15Reuters+15.

2. Stocks Bounce Back
   Stocks rallied after Powell dismissed the rumors, with the S&P 500, Nasdaq, and Dow all recovering early losses. The Nasdaq and S&P closed ~0.3% higher, led by small caps—supported by softer wholesale inflation dataWall Street Journal+1Investors+1Investors.

3. Treasuries React
   The 10-year yield remains around 4.45%, holding steady after Wednesday’s volatility, as bond markets absorbed the shocks and reverted to cautious positioningReuters+15Wall Street Journal+15Wall Street Journal+15.

4. Gold Rises on Uncertainty
   Amid dollar weakness and policy worries, gold jumped ~0.7%, drawing safe-haven flows and touching fresh multi-week highsInvestopedia.

5. Treasury Buyback Plans in Focus
   Wall Street is digesting the U.S. Treasury’s planned expansion of its bond buyback program, aimed at supporting yields. Analysts caution that, without broader fiscal reforms, the impact may be limited.

🔭 What to Look Out For Today

• Retail Sales Data (8:30 AM ET): Strong figures could push yields higher and weigh on gold; weak data may trigger a risk-off tilt.

• Netflix Earnings & Corporate Flow: With Netflix out, look for broader sentiment signals—Micron and others may move markets.

• Further Fed Commentary: Watch for any follow-up from Fed officials to see if policy independence concerns linger.