Wall Street rattled as Donald Trump says he has discussed firing Jerome Powell, ASX set to rise

Trump’s tariffs are making their weight felt across financial markets. ASML, the world’s leading supplier of chipmaking gear, warned that it can’t guarantee any growth next year, after delivering an expected 15 per cent growth in sales for 2025.

Conditions still look strong for ASML’s customers in the artificial-intelligence business, but CEO Christophe Fouquet said in a video that “the level of uncertainty is increasing, mostly due to macroeconomic and geopolitical consideration. And that includes, of course, tariffs.”

Shares that trade in the United States of ASML, which is based in the Netherlands, fell 9.2 per cent.

Stocks of several US companies reporting stronger profits for the latest quarter than analysts expected helped to offset that.

Johnson & Johnson jumped 6.2 per cent after the drug and medical device giant beat analysts’ sales and profit targets and raised its full-year forecasts for both. CEO Joaquin Duato said it expects “game-changing approvals and submissions” in the second half of 2025 on an array of products, including for lung and bladder cancer.

PNC Financial Services Group added 0.9 per cent following its better-than-expected quarterly report, thanks in part to loan growth despite what CEO Bill Demchak called “an uncertain macro environment.”

GrabAGun, an online retailer of firearms and ammunition, swung sharply after combining with Colombier Acquisition Corp. II and taking its spot on the stock market under the ticker “PEW.” Donald Trump Jr., the son of President Trump, is joining the company’s board.

The stock quickly went from an early gain of 19 per cent to a drop of 31 per cent before moderating its loss to 26.5 per cent, with several halts in trading along the way.

In the bond market, the yield on the 10-year US Treasury fell to 4.47 per cent from 4.50 per cent late Tuesday. It had been as low as 4.44 per cent earlier in the day, but it climbed following the reports that Trump was likely to fire Powell.

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While a new Fed chair friendlier to Trump could mean lower short-term interest rates, it could have the opposite effect on longer-term yields. That’s because a less independent Fed would raise worries that it may also let inflation run higher in the future.

In stock markets abroad, indexes mostly fell amid relatively modest movements.

Stocks rose 0.7 per cent in Jakarta after Trump said Tuesday that he plans to charge imports from Indonesia a tariff of 19 per cent, instead of the 32 per cent that he had threatened earlier, after reaching a trade deal.

Indonesia’s central bank also cut its key interest rate by 0.25 percentage points on Wednesday, to 5.25 per cent.

“We have calculated everything and discussed everything. The most important thing for me is my people, as I must protect the interests of our workers,” Indonesian President Prabowo Subianto told reporters, adding that “this is our offer, and we are not able to give more (to the United States).”

AP

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