S&P 500, Dow Jones Advance as Trump Clears the Air on Powell Firing, Netflix, TSM Earnings Preview

[Redator]

U.S. stock indexes turned negative on Wednesday after Bloomberg News reported, citing a White House official, that President Donald Trump might soon fire Federal Reserve Chair Jerome Powell.

President Trump responded swiftly when asked by denying that he plans to fire Federal Reserve Chair Jerome Powell.

Trump called the reports untrue, saying, "I don’t rule out anything, but it’s highly unlikely unless he has to leave for fraud." This comment referred to recent criticism from the White House and Republican lawmakers over cost overruns in the $2.5 billion renovation of the Fed’s historic headquarters in Washington.

The impact of this saw stocks whipsaw with the S&P 500 and Dow Jones recovering the initial losses following the Bloomberg report.

Earnings Season Gathers Pace with Netflix and TSM Reporting Tomorrow

US semiconductor equipment makers dropped after ASML warned it might not grow next year due to uncertainty over US tariffs. Applied Materials and Lam Research both fell by 2.8%.

Meanwhile, Bank of America is up over 1% after reporting higher Q2 profits, thanks to its traders benefiting from market volatility. Yesterday, JP Morgan and Citigroup also reported better-than-expected results.

Netflix and TSM Earnings Preview

Netflix will release its Q2 2025 earnings on Thursday, July 17, and analysts expect strong results. Forecasts include $11.048 billion in revenue (up 15.6% from last year), $3.55 billion in pre-tax profit (up 41%), and earnings per share (EPS) of $7.07.

This growth is mainly thanks to the success of Netflix's ad-supported plan, which hit 94 million monthly users by early 2025, and its move into live sports like WWE and NFL games.

Technically, the stock is near its all-time high, with $1,500 targeted if it breaks resistance. Investors will focus on advertising revenue and subscriber growth

Taiwan Semiconductor Manufacturing Company (TSM) is expected to beat its Q2 2025 earnings estimates, with analysts predicting a 60.1% jump in earnings per share (EPS) to $2.37 and a 44.3% rise in revenue to $30.04 billion. TSM has a strong track record of exceeding expectations, thanks to its leadership in semiconductors and growing demand for AI-related products.

The company’s growth is supported by investments in advanced 7nm and 3nm chip technologies, as well as its focus on high-performance computing and smartphones. However, rising costs from overseas expansion and higher electricity prices could affect profit margins and may be worth keeping an eye on.

Technical Outlook - Dow Jones, S&P 500

From a technical standpoint, the Dow Jones Index has been edging lower over the last 7 or 8 trading days, having come within a whisker of its all-time highs.

Both the Dow and the S&P face a challenge as they both appear to be struggling to attract fresh capital as prices hover near all-time highs.

Implications around tariffs have also kept market participants nervous as the indexes hover at such lofty prices.

The Dow Jones on the weekly chart has also printed what could be seen as a triple top pattern as seen below.

Could this be a sign of a deeper corrective move in the near future?

Immediate support rests at 43955, 43150 and 42626.

Immediate resistance rests at 44500, 45226 and 45500 respectively.

Dow Jones Weekly Chart, July 16, 2025

Source: TradingView (click to enlarge)

S&P 500

From a technical standpoint, the S&P is slightly different from the Dow Jones having printed fresh all-time highs last week, around 6297.

The index has been a bit choppy this week as markets digest Q2 earnings and wait on the mag 7 to report.

Tariff and trade deal questions are also likely weighing on the minds of market participants.

Looking at the daily chart below, the RSI remains below the overbought level which does bode well for further upside.

Positive earnings and outlooks from the mag 7 could aid the S&P to push even higher than last week highs but time will tell.

Immediate support rests at 6152, 6067 and 6000.

Immediate resistance rests at 6297, 6500 and 6750 respectively.

S&P 500 Daily Chart, July 16, 2025

Source: TradingView (click to enlarge)

Follow Zain on Twitter/X for Additional Market News and Insights @zvawda

Opinions are the authors'; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. The provided publication is for informational and educational purposes only.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© {CURRENT_YEAR} OANDA Business Information & Services Inc.