U.S. stocks rose on Friday, positioning Wall Street for a strong weekly close, after President Donald Trump’s interim nomination for a Federal Reserve governor fueled speculation of a shift toward a more dovish monetary policy. By 9:34 a.m. ET, the Dow Jones Industrial Average was up 134.42 points, or 0.31%, to 44,103.06. The S&P 500 gained 17.22 points, or 0.27%, to 6,357.22, while the Nasdaq Composite advanced 44.83 points, or 0.21%, to 21,287.53.
On Thursday, Trump nominated Stephen Miran, chair of the Council of Economic Advisers, to fill a short-term seat on the Fed’s Board of Governors following Adriana Kugler’s sudden departure. The president also narrowed his shortlist to replace Fed Chair Jerome Powell, whose term ends May 15. Bloomberg News reported that current Fed Governor Christopher Waller has emerged as a leading contender for the role.
The developments added to market uncertainty as investors weighed the implications of a potential leadership shake-up at the central bank. Trump’s nominations have stirred concerns about the Fed’s independence and raised expectations for looser monetary policy, which could pave the way for deeper interest rate cuts.
“The reality is the president can’t force a chair to step down or compel governors to push rates lower,” said Phil Blancato, CEO of Ladenburg Thalmann Asset Management. “This is about him putting in folks who are going to be more dovish and ultimately lead to deeper rate cuts, whether they’re justified or not.”