Wall Street’s main indexes were almost flat on Tuesday as investors parsed Federal Reserve Chair Jerome Powell’s latest comments. Powell said the central bank was in no hurry to cut its short-term interest rate again, citing a strong overall economy with low unemployment and inflation above the Fed’s 2% target.
The remarks came ahead of President Donald Trump’s decision to substantially raise levies on imports of steel and aluminum, and hinted at announcements about reciprocal tariffs over the next two days. Investors are now waiting for Powell’s Senate testimony, which is part of a two-day hearing on Capitol Hill.
Despite these uncertainties, investors found solace in some upbeat earnings reports, including DuPont, Coca-Cola, and Ecolab, which all raised their 2025 profit forecasts. Apple also jumped 2.7% after partnering with Alibaba to develop AI features for iPhone users in China.
The Dow Jones Industrial Average rose 0.07%, the S&P 500 gained 0.01%, while the Nasdaq Composite fell 0.09%. Energy stocks led gains among major S&P sub-sectors, adding close to 1% as crude oil prices remained elevated. Phillips 66 rose 5.3% after activist Elliott Investment Management built a stake of over $2.5 billion in the oil refiner.
Source: https://www.reuters.com/markets/us/futures-dip-powell-speech-focus-tariff-inflation-comments-2025-02-11