Federal Reserve Chairman Jerome Powell stated this morning in his Senate testimony that recent inflation readings show progress, but more data is needed before considering interest rate cuts.
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The three major Wall Street indices are trading mixed on Tuesday morning. Stock averages are moving in different directions as the market digests the testimony of Federal Reserve Chairman Jerome Powell before the U.S. Senate.
The Dow Jones Industrial Average, composed of 30 major companies, is down 0.17% to 39,279.50 points. The S&P 500, which includes 500 stocks, is up 0.19% to 5,583.25 points. The tech-heavy Nasdaq Composite is advancing 0.24% to 18,447.63 points.
In his semi-annual testimony before the U.S. Senate this morning, Jerome Powell indicated that recent inflation readings show progress in reducing pressure but emphasized that more data is needed before cutting rates.
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Despite his measured comments, investors believe there is a 68.10% probability that the central bank will cut interest rates in September, according to the CME’s FedWatch Tool. New inflation data is expected on Thursday and Friday.
Meanwhile, investors are gearing up for the second-quarter earnings season. The first corporate reports will be released by banks JP Morgan, Wells Fargo, and Citigroup, as well as other major global companies like PepsiCo.
By sector, communication services (0.63%) and technology (0.48%) are leading the gains, while energy (-0.93%) is experiencing the largest losses. Within the Dow Jones index, Intel is notable for its 1.84% gain, while Amgen (-0.99%) and Dow Inc (-0.95%) are among the biggest losers.