Home Business Wall Street fluctuates after Powell’s congressional testimony.

Wall Street fluctuates after Powell’s congressional testimony.

Wall Street fluctuates after Powell’s congressional testimony.

Federal Reserve Chair Jerome Powell’s remarks in front of Congress had little impact on the market’s expectations for a Fed interest rate cut, leading to a mixed closing for stock indexes on Wall Street. The S&P 500 and Nasdaq composite reached all-time highs, while the Dow Jones Industrial Average experienced slight fluctuations throughout the day, ultimately ending in a 0.1% decrease. Powell highlighted the easing of inflation over the past two years but warned against the risks of cutting interest rates too late or too little, which could weaken the economy and job market.

Despite Powell’s testimony providing limited guidance on the Fed’s interest rate plans, traders are still anticipating a 70% chance of a rate cut as early as September. Treasury yields saw a slight increase, and while inflation has been easing, it remains above the Fed’s 2% target. Consumer spending has been impacted by inflation, leading to changes in priorities and increased borrowing costs. Market experts are hopeful for rate cuts to alleviate pressure on consumers and investors, with expectations set on one rate cut later in the year.

Gains in banks offset declines in other sectors, including industrials and energy, within the S&P 500 index. The market also reacted to earnings reports, with stocks like chipmaker Intel and consumer goods company Helen of Troy experiencing notable movements. With Powell set to testify before the House Financial Services Committee and upcoming reports on consumer and wholesale inflation, Wall Street remains attentive to further economic developments and earnings updates from companies like Delta Air Lines and major banks.

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