US stocks advanced on Thursday as Wall Street filtered through a fresh wave of earnings but stayed wary of the next move in President Trump's campaign to oust Federal Reserve Chair Jerome Powell.

The Dow Jones Industrial Average (^DJI) rose 0.3% while the S&P 500 (^GSPC) also gained about 0.3%. The tech-heavy Nasdaq Composite (^IXIC) climbed 0.4% on the heels of another record-setting session for tech stocks.

The major US indexes are consolidating near record highs as investors navigate a plethora of catalysts, including earnings, economic data, Trump's tariffs, and the president's displeasure with the Fed's stance on interest rates.

Retail sales rebounded in June, an indication that Trump's tariffs are not significantly impacting consumer spending habits yet. The reading serves as another snapshot of the health of the US consumer, who big banks so far this earnings season say seem to be doing just "fine."

Also out Thursday morning, data from the Department of Labor showed 221,000 initial jobless claims were filed in the week ending July 12. After picking up in May, weekly filings for unemployment claims are now at their lowest level in three months.
In earnings, TSMC (TSM) posted a record quarterly profit early on Thursday, citing stronger and stronger AI demand. The Nvidia supplier's shares popped as its results boosted other chipmaker stocks. Meanwhile, PepsiCo (PEP) reported a surprise rise in revenue and lowered its forecast drop in 2025 profit.

But Netflix (NFLX) is the highlight of Thursday's docket, as it kicks off this season's Big Tech earnings reports with results due after the bell. The streaming giant's shares are on a tear so far this year.

On the back burner for now are Trump's renewed threats to attempt to fire Powell, which sparked a stock sell-off at one point on Wednesday. While the president said he was "not planning" to do so, he has spent months excoriating Powell and the Fed's lack of appetite for interest rate cuts.

Investor bets suggest Trump is likely to remain disappointed after the central bank's meeting in two weeks, as nearly 100% of traders expect a rate hold amid mixed signals on inflation. Several Fed officials are scheduled to speak on Thursday, which could move the needle.

Meanwhile, the dollar (DX=F) continued to climb out of the trough it fell into as the prospect of Powell’s removal rattled markets.