Global markets held steady on Thursday as investors digested mixed signals surrounding U.S. Federal Reserve Chair Jerome Powell’s future, ongoing inflation data, and a fresh wave of corporate earnings.

While U.S. President Trump stated he has “no plans” to remove Powell, he acknowledged having considered it a comment that briefly shook markets. However, the broader investor reaction was notably restrained, reflecting growing resilience to political volatility.

Key Developments Driving Markets

Federal Reserve and Political Uncertainty
Reports that President Trump mulled firing Powell sparked short-term turbulence in equity and currency markets. The S&P 500 briefly dropped 0.7%, while the U.S. dollar weakened across the board. Despite this, investors appear increasingly desensitized to policy-related headlines, waiting for concrete moves before pricing in significant risk.

Tech in Focus: TSMC & Netflix Earnings

TSMC, the world’s largest contract chipmaker, is expected to report a 52% surge in second-quarter profit, boosted by robust demand for AI chips. However, concerns about U.S. tariffs and a stronger Taiwanese dollar may temper investor enthusiasm.

Netflix is set to announce Q2 earnings later today, with markets watching closely for progress on its live sports initiatives and ad-supported tier. With the stock up sharply year-to-date, expectations are high.

UK Economic Signals
The UK labor market showed signs of cooling, with wage growth easing and unemployment holding at 4.6%. However, an unexpected rise in inflation to 3.6% in June is complicating the Bank of England’s policy outlook.

Market Snapshot

Stocks: European and Asian indices traded mixed following a quiet Wall Street session.

Currencies: The U.S. dollar weakened slightly amid Fed uncertainty. The Australian dollar fell after jobs data showed rising unemployment.

Commodities & Bonds: Bond yields ticked lower as investors priced in increased political risk to Fed independence and potential for earlier-than-expected rate cuts.

Looking Ahead

Investors remain cautious but composed as they await further clarity on Powell’s standing, key tech earnings, and central bank policy signals. The market’s stoic response suggests traders are increasingly focused on fundamentals over political noise at least for now.