Dow, S&P 500, Nasdaq rally stalls with fresh records in sight
Agencies
New York
US stocks wavered on Wednesday as President Trump said the Israel-Iran conflict was effectively 'over' for now, while Fed Chair Jerome Powell stressed the central bank is still studying the effects of Trump's tariffs before deciding onrate cuts.
The tech-heavy Nasdaq Composite rose about 0.1 percent, paring bigger initial gains, with Nvidia rising over 3 percent and on pace for a record close. Meanwhile, the S&P 500 eyed its own record, but its rally stalled, and it was down around 0.1 percent. The Dow Jones Industrial Average dipped 0.4 percent.
Stocks lost steam as Powell testified before the Senate Banking Committee in his second day of congressional testimony. He tangled with Republican senators amid pressure from the Republican side, most prominently from Trump himself, to cut rates.
Powell repeated that tariff-driven inflation remains an open question for the central bank. He said the Fed is looking to upcoming months of data as it weighs the potential effects on monetary policy.
'There will be some inflation from tariffs coming, not yet, but over the course of the coming months,' he said.
Market spirits had gotten a boost from Powell's comments to Congress the prior day, as the Fed chair said policymakers could act 'sooner rather than later' on rate cuts.
His comments lay the ground for the release of the Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) report, due on Friday. Economists expect annual 'core' PCE — which strips out volatile food and energy costs — to have ticked up in May, compared with April. But scrutiny will also fall on any signs that Trump's tariffs pushed prices higher.
Investors are also keeping a close eye on the US-brokered Middle East truce, which appears to be holding. There have been no reported strikes between Israel and Iran since Trump lambasted both for breaching an agreement to pause hostilities to give room for diplomacy. Oil prices edged higher on Wednesday astensions cooled.
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Dow, S&P 500, Nasdaq rally stalls with fresh records in sight
Agencies New York US stocks wavered on Wednesday as President Trump said the Israel-Iran conflict was effectively 'over' for now, while Fed Chair Jerome Powell stressed the central bank is still studying the effects of Trump's tariffs before deciding onrate cuts. The tech-heavy Nasdaq Composite rose about 0.1 percent, paring bigger initial gains, with Nvidia rising over 3 percent and on pace for a record close. Meanwhile, the S&P 500 eyed its own record, but its rally stalled, and it was down around 0.1 percent. The Dow Jones Industrial Average dipped 0.4 percent. Stocks lost steam as Powell testified before the Senate Banking Committee in his second day of congressional testimony. He tangled with Republican senators amid pressure from the Republican side, most prominently from Trump himself, to cut rates. Powell repeated that tariff-driven inflation remains an open question for the central bank. He said the Fed is looking to upcoming months of data as it weighs the potential effects on monetary policy. 'There will be some inflation from tariffs coming, not yet, but over the course of the coming months,' he said. Market spirits had gotten a boost from Powell's comments to Congress the prior day, as the Fed chair said policymakers could act 'sooner rather than later' on rate cuts. His comments lay the ground for the release of the Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) report, due on Friday. Economists expect annual 'core' PCE — which strips out volatile food and energy costs — to have ticked up in May, compared with April. But scrutiny will also fall on any signs that Trump's tariffs pushed prices higher. Investors are also keeping a close eye on the US-brokered Middle East truce, which appears to be holding. There have been no reported strikes between Israel and Iran since Trump lambasted both for breaching an agreement to pause hostilities to give room for diplomacy. Oil prices edged higher on Wednesday astensions cooled.
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