Choppy Markets and Fed Speculations Steer Wall Street's Volatile Week

The S&P 500 saw a slight uptick amid volatile trading, powered by gains in chip stocks and speculations around Fed leadership. Investors remained cautious owing to ongoing economic advisor reshuffles and concerns about Federal Reserve independence, alongside mixed financial sector performance and defensive sector gains.

In a tumultuous week for Wall Street, the S&P 500 experienced minor gains driven primarily by surges in chip stocks. As the week unfolded, speculations swirled around potential changes in Federal Reserve leadership, impacting investor sentiment and market bets on future federal rates.

President Donald Trump hinted at keeping Kevin Hassett as an economic adviser, while odds of Kevin Warsh succeeding Jerome Powell as Fed chair increased. Despite these uncertainties, U.S. stocks managed to record slight increases, even as hints of Federal Reserve independence issues surfaced following statements by Powell.

Defensive sectors like consumer staples, real estate, and utilities led the week's gains, as investors shifted focus from high-profile tech stocks to smaller-cap indices. Meanwhile, the financial sector faced challenges with discussions around a proposed credit card interest cap. As investors eyed the long weekend, Wall Street braced for next week's earnings reports from major corporations.

(With inputs from agencies.)