02:06 PM EDT, 06/26/2025 (MT Newswires) -- US benchmark equity indexes were higher intraday amid a report that President Donald Trump is considering naming a replacement for Federal Reserve Chair Jerome Powell earlier than usual.

The Dow Jones Industrial Average and the Nasdaq Composite were up 0.8% each at 43,330.7 and 20,136.6, respectively, after midday Thursday. The S&P 500 rose 0.7% to 6,135.6. Among sectors, communication services paced the gainers, while real estate saw the biggest drop.

Trump is contemplating naming Powell's replacement by September or October, which would be earlier than the usual three- to four-month transition period, The Wall Street Journal reported, citing people familiar with the matter. The new chair wouldn't take office until next May, according to the report.

On Wednesday, Trump said that Powell "goes out pretty soon, fortunately, because I think he's terrible," CNBC reported. "I know within three or four people who I'm going to pick."

"Trump's desire to 'shadow' the Fed using a designated replacement for (Powell) isn't a good way to promote the perceptions of integrity and autonomy in US policymaking," Macquarie said in a Thursday client note.

Trump has repeatedly called on the central bank to cut rates. Last week, the Fed kept its policy rate unchanged for a fourth straight meeting, while sticking to its federal funds rate outlook for 2025 amid higher inflation expectations.

Earlier this week, Powell said in prepared remarks to the House Committee on Financial Services that the Fed can continue to wait and evaluate how the US economy responds to policy changes before it adjusts its monetary policy.

Richmond Fed President Tom Barkin said Thursday there is "little upside in heading too quickly in any one direction" as policymakers are facing elevated uncertainty.

"Given the strength in today's economy, we have time to track developments patiently and allow the visibility to improve," Barkin said. "When it does, we are well positioned to address whatever the economy will require."

US Treasury yields were lower intraday, with the 10-year rate falling 2.8 basis points to 4.27% and the two-year rate losing 5.6 basis points to 3.72%.

In economic news, the US economy contracted more than previously estimated in the first quarter as consumer spending weakened, according to a final estimate released Thursday by the Bureau of Economic Analysis.

"Consumers tightened their wallets a lot more than initially anticipated in the first three months of the year as tariff uncertainty weighed," BMO Capital Markets said.

Pending home sales in the US increased more than projected in May amid gains across all four regions on a monthly basis, data from the National Association of Realtors showed.

Weekly applications for unemployment insurance in the US declined more than expected, while continuing claims reached their highest level since November 2021, according to government data.

"Initial jobless claims slipped in the latest week, but layoff notices suggest we could see a pickup in job losses and initial claims in the weeks ahead," Oxford Economics said.

West Texas Intermediate crude oil was up 1% at $65.57 a barrel intraday.

In company news, Acuity Brands' (AYI) fiscal third-quarter results came in stronger than expected, which the company said positions it for a "solid" second half of the year. The lighting and building management solution provider's shares were up 6.8%.

McCormick ( MKC ) shares jumped 5.6% after the spices and seasonings producer reiterated its full-year outlook amid plans to offset costs related to tariffs. The company's fiscal second-quarter earnings were unchanged annually, but defied market expectations for a decline.

Gold was up 0.1% at $3,345 per troy ounce, while silver rose 1.3% to $36.57 per ounce.