- The S&P 500 and Nasdaq 100 hit new records on Tuesday.
- Investors focused on testimony from Fed Chairman Powell, whose comments did not change the interest rate outlook.
- June CPI data is due to be released on Thursday, and economists are expecting a 3.1% increase from a year ago.
The S&P 500 and Nasdaq 100 hit new records on Tuesday, but trading across the broader stock market remained subdued.
The outlook for monetary policy has remained largely unchanged following Federal Reserve Chairman Jerome Powell’s testimony before Congress, with markets instead continuing to expect two interest rate cuts in the final few months of the year.
In his speech, Powell highlighted mounting data showing a slowing job market and said the Fed wants to see further signs of deinflation. His testimony continues through Wednesday.
The latest inflation data is due to be released on Thursday when the consumer price index for June is due to be released, with economists expecting a 3.1% increase from a year earlier.
“Continued pressure in services and home prices suggests the move from around 3.0% to the Fed’s price stability target (2.0%) may be difficult to achieve,” predicts John Lynch, chief investment officer at Comerica. “Investors will therefore be closely watching this Thursday’s CPI report for signs that the Fed could justify a rate cut in September.”
As of the close of trading at 4 p.m. on Tuesday, U.S. stock indexes were as follows:
Here’s something else that happened today:
Commodities, Bonds and Cryptocurrencies:
- West Texas Intermediate crude fell 1% to $81.53 a barrel, while the international benchmark Brent crude dropped 1.7% to $84.75 a barrel.
- Gold rose 0.21% to $2,363.48 per ounce.
- The yield on the 10-year Treasury note rose 2 basis points to 4.293%.
- Bitcoin rose 1.92% to $57,788.
