- The recent rally in stocks stalled as investors’ bets on interest rate cuts were made uncertain by the Fed’s commentary.
- Fed President Kashkari said interest rates may not be restrictive enough to curb inflation.
- Earnings continued to rise, with Disney and Palantir falling sharply after their first quarter reports.
U.S. stocks were mostly higher on Tuesday, with the S&P 500 and Dow Jones Industrial Average continuing their modest gains.
The Dow Jones Industrial Average posted its fourth straight day of gains, adding to a rebound that began last week. Gains slowed during trading Tuesday as doubts about a rate cut rose again after Minneapolis Fed President Kashkari said rates may not yet be restrictive enough to curb inflation. did.
His comments came after Federal Reserve President Tom Barkin took a similar hawkish stance on Monday, suggesting the economy needs to slow further before changing policy.
Still, futures markets are predicting two 25 basis point rate cuts this year, more than expected in April.
Investors will be watching for further commentary this week, with Federal Reserve President Lisa Cook and Chicago President Austan Goolsby scheduled to speak on Wednesday and Friday.
Meanwhile, earnings data continues to flow in, helping sustain the index. However, shares of Disney and Palantir plunged 10% and 15% on Tuesday after the weak press coverage.
Here are the U.S. indices as of Tuesday’s close at 4 p.m.
Here’s what else happened today:
In Commodities, Fixed Income and Cryptocurrencies:
- West Texas Intermediate crude oil rose 0.6% to $78.52 a barrel. Brent crude, the international benchmark, rose 0.1% to $83.22 per barrel.
- Gold fell 0.31% to $2,313.23 per ounce.
- The yield on the 10-year Treasury note fell 2 basis points to 4.465%.
- Bitcoin was almost flat at $63,142.
