US stocks climb as Trump backs off threat to remove Fed Chair Powell

On Wednesday, the S&P 500 edged closer to record levels as US President Donald Trump dismissed speculation about ousting Federal Reserve Chairman Jerome Powell, thus easing investor concerns.

The benchmark index rose 0.3%, recovering part of its earlier 0.7% decline and finishing just 0.2% below its all-time high. Healthcare and real estate stocks led the gains, as these sectors are known for their stable dividends and attractive valuations. Energy shares, however, underperformed, Bloomberg notes. 

Similarly, the Nasdaq 100 recovered from a 0.9% intraday fall, ending Wednesday 0.1% higher and setting a new record.

Trump's rejection of his administration's intentions to remove Powell helped ease market anxieties, as financial analysts had warned that such a move could cause market turbulence. Powell reiterated that the US President lacks the legal authority to dismiss or demote Fed officials.