Super Micro Stock Gains As Trump Signals No Plans To Fire Powell

Super Micro Computer, Inc. SMCI stock is trading higher amid overall market strength after President Donald Trump said he had no intention of firing Federal Reserve Chair Jerome Powell.

The Details: According to the Wall Street Journal, Trump told reporters he wants Powell to "be a little more active in terms of his idea to lower interest rates," but added, "no, I have no intention to fire him." This comes after Trump wrote on Truth Social Monday that Powell has always been "Too Late" on interest rate decisions.

Trump made similar threats toward the Fed during his first term. In December 2018, he threatened to fire Powell as the Fed raised interest rates.

More recently, Trump told reporters he believes he has the authority to fire Powell, saying, "If I want him out, he'll be out of there real fast, believe me," though Powell has expressed a differing view on the matter.

Super Micro, along with the broader semiconductor sector, may be moving higher as Trump’s comments ease investor uncertainty around Fed leadership and fuel market optimism.

What Else: The Trump administration is also considering lowering tariffs on Chinese goods, which currently reach as high as 145%, in an effort to ease tensions in the U.S. trade relationship with China, per the Wall Street Journal.

Although no final decision has been made, a senior White House official said tariffs are likely to be reduced to between 50% and 65%. Trump stated that the final rate won’t be 0%.

The administration may also adopt a tiered approach, with tariff rates varying based on what is deemed strategic to America's interests.

This news may be lifting Super Micro, and the chip industry, as a potential tariff reduction could ease investor concerns around trade and supply chain disruptions, which has been weighing on the sector.

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SMCI Price Action: At the time of publication, Super Micro shares are trading 7.39% higher at $32.84, according to data from Benzinga Pro.

Image: This illustration was generated using artificial intelligence via Midjourney.